The Following Information Was Given Regarding a Proposed Project at Field

question 8

Multiple Choice

The following information was given regarding a proposed project at Field Corp. (FC) .
$\begin{array}{|c|r|}\hline \text { Probability (S) } & \text { Poticutial Profir (S) } \\\hline 40\% & \$ 10,000 \\\hline 25\% & \$ 15,000 \\\hline 50\% & (\$ 20,000) \\\hline 30\%& \$ 5,000 \\\hline\end{array}$
-This project's expected profit is ________.

• A) $5,000
• B) $5,499
• C) $8,250
• D) $12,890

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Definitions:

Expansionary Gap

A situation where actual output in an economy exceeds the potential output, typically leading to inflation.

Recognition Lag

The delay between the time an economic problem or trend is identified and the time it is officially recognized by policymakers or authorities.

Implementation Lag

The time needed to introduce a change in monetary or fiscal policy.

Recognition Lag

The time it takes for policymakers to identify an economic issue or trend that requires intervention.