The following table illustrates alternative production techniques for producing 18 widgets that can be sold for $1 each for a total revenue of $18. Resource Price Per Unit of resource Techniques (# of Units of Each Resource Required) A B C D Labor $ 2 3 2 1 2 Land 1 2 1 3 1 Capital 4 1 2 2 3 Entrepreneurship 3 1 2 1 1 If the price of labor increases from $2 to $3, then the results of using Technique C will change from an economic

In the modern economic growth process, it is typical to find that

The gross domestic product is not a good measure of the standard of living in a nation because it

A business buys $8,000 worth of inputs from other firms in order to produce a product. The business makes 100 units of the product and each of them sells for $130. The value added by the business to these products is

If real GDP in a year was $3,668 billion and the price index was 112, then nominal GDP in that year was approximately

A nation’s real GDP was $250 billion in Year 1 and $258 billion in Year 2. Its population was 120 million in Year 1 and 125 million in Year 2. What is its real GDP per capita in Year 2?

 Market efficiency implies that it is the form of the disclosure and not the information content that is important to investors.  

  A rational investor makes investment decisions based on maximization of his/her expected utility or wealth.  

One type of risk not covered by the CAPM is estimation risk.  

An efficient market is one where the prices of securities traded on the market at all times “fully reflect” all information, whether public or private.