The added return an investor needs to compensate for the risks of future payments is called a(n)
A. internal rate of return.
B. present discounted value.
C. marginal risk product.
D. risk premium.
Answer: D
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Refer to Scenario 14.4. Suppose that the price of the product rises to $5, the price of labor
A) will decrease. B) will increase. C) will not change. D) will change in an indeterminate fashion.
Which of the following countries is forbidden to impose export tariff by its constitution?
a. The United States b. Brazil c. United Kingdom d. Japan e. Mexico
Which of the following is an example of the life-cycle motive for saving?
A. Jordan sets aside $200 per month in case she has to pay for a new roof for her house. B. Chris keeps $15,000 in a money market account to pay expenses in case he loses his job. C. Pat puts $400 per month in his 401(k) retirement account. D. Gerry and Terry put $2,000,000 in a trust fund that will go to their children when they die.
There is a 10% chance that you will have healthcare bills of $200,000; a 20% chance that you will have bills of $10,000; a 59% chance that you will have bills of $1,000; and an 11% chance of having bills of $0. What are your expected healthcare bills?
What will be an ideal response?