You can invest $100,000 into either project A or B. You estimate that A would succeed with a probability of 0.5 in which case it doubles in value. If it fails, its scrap value is $50,000 . Project B would succeed with probability 0.8, in which case it would have a value of $150,000 . If it fails, project B's scrap value is $30,000 . Which project should you invest in?
a. Project A
b. Project B
c. Neither of the projects
d. You cannot tell from the information presented
b
Economics
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Which of the following would most likely be sold in the product markets?
A) iron ore B) entrepreneurial ability C) a new car D) stocks and bonds
Economics
Suppose the economy was in equilibrium, and the national government increased spending by $200 billion. Monetarist theory would predict that the main factor that will readjust the economy is the:
a. Price level. b. Real GDP. c. Nominal and real exchange rates. d. Real risk-free interest rate. e. Money supply.
Economics