Expected value refers to the
A. Present value of a future payment.
B. Difference in the rates of return on risky and safe investments.
C. Probable value of a future payment, including the risk of nonpayment.
D. Future value of a current payment.
Answer: C
You might also like to view...
Answer the following statement(s) true (T) or false (F)
1. A simple profit-maximizing monopoly will choose its price and quantity from the elastic portion of its demand curve. 2. Unlike perfectly competitive firms, monopolies do not produce where marginal revenue equals marginal cost, thus leading to deadweight loss. 3. In practice, many monopolists are required to earn zero economic profit. 4. If a natural monopoly charged the competitive price, it would earn a negative profit. 5. A competitive industry is a viable alternative to a natural monopoly.
In the neoclassical growth model, convergence is conditional upon two countries having
a. the same savings rates. b. the same depreciation rates. c. the same technology growth rates. d. the same population growth rates. e. all of the above.
If the firms in a perfectly competitive market are continually operating where their total costs exceed their total revenue in the short run, then in the long run
a. the number of firms in the market will remain unchanged b. the number of firms in the market will increase c. the number of firms in the market will decrease d. existing firms will increase their plant sizes e. existing firms will increase their output
In the aggregate demand-aggregate supply model in the short run, an increase in the money supply will lead to a(n) _____
Fill in the blank(s) with the appropriate word(s).