Consider the Following Three Stocks The Value-Weighted Index Constructed with the Three Stocks Using a \text

question 42

Multiple Choice

Consider the following three stocks: $\begin{array}{lll}\text { Stock } & \text { Price Number of shares}& \text { outstanding } \\\text { Stock A } & \$ 40 & 200 \\\text { Stock B } & \$ 70 & 500 \\\text { Stock C } & \$ 10 & 600\end{array}$
The value-weighted index constructed with the three stocks using a divisor of 100 is

• A) 1.2.
• B) 1200.
• C) 490.
• D) 4900.
• E) 49.

Understand the role and impact of federal transfer payments.

Comprehend the historical context and changes in tax rates over time, including the effects of major tax reforms.

Distinguish between government purchases of goods and services and transfer payments.

Analyze the relationship between tax policies and economic sectors (e.g., consumption, investment, and government spending).

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