Which of the following would best be a brief definition of present value?
A. Assets minus liabilities incurred to acquire the assets
B. Benefits of an minus its costs
C. The sum of all the past values of an asset
D. The current value of the expected future returns on an asset
D. The current value of the expected future returns on an asset
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Why is the value added by each producer included in the calculation of GDP instead of his sales revenue?
What will be an ideal response?
Suppose Jack and Kate are at the town fair and are choosing which game to play. The first game has a bag with four marbles in it-1 red marble and 3 blue ones. The player draws one marble from the bag; if it is red, they win $20 and if it is blue, they win $1. The second game has a bag with 10 marbles in it-1 red, 4 blue, and 5 green. The player draws one marble from the bag; if it is red, they win $20; if it is blue, they win $5; and if it is green, they win $1. Both games cost $5 to play. What is the expected value of the payoff in the first game?
A. $5.75 B. $5.00 C. $4.75 D. $4.50
A country has a comparative advantage in a good if
A. It always has an absolute advantage in the production of the good. B. It can produce more of the good than another country. C. It can specialize only in two goods. D. It can produce a good at a lower opportunity cost relative to another country.
A manager in charge of new product development can hire engineers and market researchers. The annual salary of an engineer is $40,000 while a market researcher receives $20,000. The marginal contribution of engineers and market researchers are:
Based on the above information, how should a manager with an annual budget of $240,000, allocate this budget in order to maximize the number of new products developed?
A. Hire three engineers and five market researchers. B. Hire four engineers and four market researchers. C. Hire five engineers and two market researchers. D. Hire three engineers and four market researchers.