The Construction Manager for Acme Construction,Inc

question 7

Multiple Choice

The construction manager for Acme Construction,Inc.must decide whether to build single-family homes,apartments,or condominiums.He estimates annual profits (in $000) will vary with the population trend as follows: If he feels the chances of declining,stable,and growing population trends are 40%,50%,and 10%,respectively,what is his expected value of perfect information?

• A)$187,000
• B)$132,000
• C)$123,000
• D)$65,000
• E)$55,000

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Definitions:

Tariff

A tax on imported goods.

Just Compensation

The fair market value that must be paid for property taken by the government for public use, as guaranteed by the Fifth Amendment.

Proper Public Purpose

Proper public purpose is a principle stating that governmental actions and the use of public resources must aim to benefit the general public or community as a whole.

Expropriation

The act of a government taking private property for public use, with compensation provided to the owner.