Using a discount rate above the market interest rate to evaluate ...

[B]

Using a discount rate above the market interest rate to evaluate projects will
 
  a. bias a decision toward going ahead with the project
  b. correct for distortions in capital markets
  c. have no impact on project evaluation
  d. bias a decision toward rejecting a project
  e. none of the above

Question 2

Which of the following is an assumption of the Lewis two-sector model?
 
  a. surplus labor in the rural sector
  b. high unemployment in the urban modern sector
  c. rising real urban wages
  d. rising marginal product of labor in the rural sector

[karmakat49]

Answer to Question 1

D

Answer to Question 2

A