You are a hotel manager and you are considering four projects that yield different payoffs, depending upon whether there is an economic boom or a recession. The potential payoffs and corresponding payoffs are summarized in the following table.ProjectBoom (50%)Recession (50%)A$20-$10B-$10$20C$30-$30D$50$50Which project has the greatest expected value?
A. A
B. B
C. C
D. D
Answer: D
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A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
Bargaining between the management of a company and the management of a union is
A) a closed shop. B) a bilateral monopoly. C) a craft union. D) collective bargaining.
Which of the following often happens when the Fed and fiscal policy makers disagree?
a. The Fed changes its policy to align with the fiscal policy b. The Fed supports the fiscal policy even though it disagrees with this policy. c. The Fed tries to limit the effects of the fiscal policy. d. The Fed waits to see how effective the fiscal policy is before acting.
If a foreclosure sale occurs, __________ liens are paid from the proceeds of the sale before any junior lien.
Fill in the blank(s) with the appropriate word(s).