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 andcorresponding payoffs are summarized in the following table.ProjectBoom (50%)Recession (50%)A$20-$10B-$10$20C$30-$30D$50$50Which project has the greatest variance?
A. A
B. B
C. C
D. D
Answer: C
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Which of the following is least likely to be an example of peak/off-peak pricing?
A. Breakfast cereals B. Hotels C. Toll roads D. Electricity
Suppose the Consumer Price Index (CPI) increased by 5 percent over each of the last 5 years while the GDP price index increased by 12 percent annually. Which of the following reasons could explain this difference?
a. Police unions across the country agreed to substantial salary cuts. b. Import good prices increased relative to domestic good prices. c. The price of used automobiles increased substantially relative to the prices of other goods. d. The price of fighter planes dropped due to increased competition in the aerospace industry. e. The price of investment goods purchased by businesses increased substantially relative to the prices of all other goods.
Which of the following is not a characteristic of most less-developed countries?
a. Inadequate human capital b. High population growth rate c. Inadequate capital goods d. High productivity e. Inadequate water supplies
What resource problem is created by positive externalizes and what methods are suggested for dealing with this problem?
Please provide the best answer for the statement.