The possibility that an investor will not receive full payment is called
A. the index problem.
B. risk.
C. credit.
D. an advance.
Answer: B
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If the population is 300 million, with 70 million under the age of 16 and institutionalized, another 70 million not in the labor force, 10 million unemployed and 150 million employed, the unemployment rate is
A) 23.3 percent. B) 6.7 percent. C) 6.25 percent. D) 26.7 percent.
If a firm needs one machine to produce a product, and must replace the machine when it wears out, then the firm should pick a durability level of the machine that
A) minimizes the expense today. B) minimizes the present discounted cost of having the machine forever. C) maximizes the future value of the machine. D) minimizes the future value of the machine.
Three possibilities have probabilities 0.4, 0.4 and 0.2 and values $10, $20, and $30 respectively. The expected value is:
a. $15 b. $16 c. $17 d. $18
Foreign aid:
A. provided by developed countries to developing countries represents about 10 percent of the GDP of developed countries. B. is an important source of funding for investment in most developing countries. C. does not contribute much to domestic investment in most developing countries. D. is largely wasted in most developing countries because it comes with no strings attached.