Since 1802, the average annual compound return for stock holdings, adjusted for inflation, has been approximately
a. 2 percent.
b. 7 percent.
c. 15 percent.
d. 30 percent.
B
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If, at some level of output, total planned real expenditures are less than real Gross Domestic Product (GDP)
A) real GDP will either fall or remain unchanged, depending on the MPC. B) real GDP will rise. C) unplanned inventories will increase and real GDP will fall. D) real GDP remains unchanged.
A firm sells 20 units of a good at a price of $5 per unit. If the average cost of production of the good equals $3 per unit, the firm's revenue is:
A) $40. B) $60. C) $100. D) $120.
The assessed value of a home is
A. the value that the jurisdiction uses to assign taxes. B. an annual 6% increase in the value of a home. C. the annual rate of deprecation of a home because of use. D. always lower than its market value.
A Nash equilibrium:
A. is reached when all players choose the best strategy they can, given the choices of all other players. B. is a point in a game when no player has an incentive to change his or her strategy, given what the other players are doing. C. is a stable outcome of a game. D. All of these statements are true.