Which of the Following Investments Would You Prefer

question 141

Multiple Choice

Which of the following investments would you prefer?

• A) an investment earning 6 percent for 10 years
• B) an investment earning 5 percent for 20 years
• C) an investment earning 4 percent for 30 years
• D) an investment earning 3 percent for 40 years

---

Definitions:

Total Revenue

The total amount of money received by a company from its sales of goods or services.

Demand

The desire of purchasers, consumers, or clients for a particular good or service coupled with the ability to pay for it.

Cross-Price Elasticity

A measure of how the quantity demanded of one good responds to a change in the price of another good, indicating the relationship between the two products.

Peanut Butter

A food paste made primarily from ground dry roasted peanuts, often spread on bread or eaten with other foods.