The interest rate is the
A. rate of investment.
B. price of credit.
C. rate of return on investment in capital goods.
D. expected rate of inflation.
Answer: B
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Gross Domestic Product is the market value of
a. all exchanges made during the course of a year b. all final goods produced during the course of a year c. all monetary transactions during the course of a year d. all the goods produced during the course of a year over and above what is required to maintain the population and the stock of capital e. all final goods sold during the course of a year
Which term measures production well and indicates when a country is materially better or worse off in terms of jobs and incomes?
a. GDP b. Standard of living c. GDP per capita d. Nominal GDP
A tax imposed on the part of income that households spend is known as a
a. luxury tax b. flat tax c. consumption tax d. income tax e. value tax
John is trying to decide whether to expand his business or not. If he continues his business as it is, with no expansion, there is a 50 percent chance he will earn $100,000 and a 50 percent chance he will earn $300,000. If he does expand, there is a 30 percent chance he will earn $100,000, a 30 percent chance he will earn $300,000 and a 40 percent chance he will earn $500,000. It will cost him $150,000 to expand. The expected value of John's earnings if he chooses not to expand is:
A. $250,000. B. $200,000. C. $400,000. D. $225,000.