As president and CEO of MegaWorld industries, you must decide on some very risky alternative investments:
Project Profit if Successful Probability of Success Loss if Failure Probability of Failure
A $10 million .5 -$6 million .5
B $50 million .2 -$4 million .8
C $90 million .1 -$10 million .9
D $20 million .8 -$50 million .2
E $15 million .4 $0 .6
The highest expected return belongs to investment
A) A.
B) B.
C) C.
D) D.
B
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To measure GDP by using the income approach, we must add all incomes and then ________ depreciation and ________ net taxes less subsidies
A) add; neither add nor subtract B) add; add C) add; subtract D) subtract; add E) neither add nor subtract; add
In the Keynesian view, a reduction in the marginal income tax rate would cause
a. output to rise and the price level to fall. b. both output and the price level to rise. c. output to rise with the price level unchanged. d. the price level to rise with output unchanged.