Suppose That Real Domestic Output in an Economy Is 20

question 111

Multiple Choice

Suppose that real domestic output in an economy is 20 units, the quantity of inputs is 10, and the price of each input is $4.Refer to the above information.All else equal, if the price of each input increased from $4 to $6, productivity would:

• A)fall from 2 to 3.
• B)fall from .50 to .33.
• C)rise from 1 to 2.
• D)remain unchanged.

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Definitions:

Bogey Portfolio

A benchmark portfolio against which the performance of an investment portfolio can be measured.

Bonds

Financial instruments representing loans made by an investor to a borrower, typically corporate or governmental, which are expected to be paid back with interest.

Sharpe Measure

An indicator of the performance of an investment compared to a risk-free asset, adjusted for its risk, calculated as the difference in returns divided by the standard deviation of the investment.

Reward

Typically refers to the potential gains or returns derived from an investment or action, balanced against the risk involved.