Which of the following is the equation for determining an expected value?
A. (1 - Risk factor) × PDV.
B. (1 - Risk factor) ÷ PDV.
C. (Risk factor - 1) × PDV.
D. (Risk factor - 1) ÷ PDV.
Answer: A
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What is outlet bias?
A) the tendency for the quality of products to improve over time even though the CPI does not measure changes in quality B) the tendency for households to spend their money at discount stores as prices rise C) the tendency for consumers to purchase newer, more technologically advanced products even though they have higher prices D) the tendency for households to spend more money over time
The law of supply says that
a. supply and income are inversely related b. supply follows demand c. quantity supplied equals quantity demanded d. price and quantity supplied are inversely related e. price and quantity supplied are directly related
Which of the following is often intended as an effect of a rescue package provided to a country?
A. It repels new private foreign lending to the country. B. It helps to avoid the problem of moral hazard. C. It limits any contagion effects. D. It stimulates the outflow of capital from the country.
If the price of a car in the United States is $26,000, and the exchange rate between the dollar and the British pound rises from $1.50 to $2.00 per pound, then the price of the American car in Britain will
A. rise. B. remain the same. C. fall. D. be irrelevant, because the British government will impose restrictions on imports from the United States.