What Is Meant by Net Present Value

question 65

Multiple Choice

What is meant by net present value?

• A) It is the discounted value of a future cash ?ow.
• B) It is the amount of money supply in an economy.
• C) It is the amount that money supply changes after a change in the equilibrium interest rate.
• D) It is the level of planned investment by a ?rm.

Identify and match various diagnostic and readiness tests with their primary assessment focus.

Understand the use of percentile and standard scores in comparing student performances.

Distinguish between tests focused on assessing specific content areas versus broad cognitive abilities.

Recognize the trade-offs between test types (open-ended vs. multiple-choice) in terms of reliability.

---

Definitions:

Consumption

Refers to the use of goods and services by households.

Utils

An imaginary unit of measurement used in economics to represent the satisfaction or utility received from consuming goods and services.

Marginal Utility

An additional amount of satisfaction gained from consuming an extra unit of a good, highlighting the concept of diminishing returns.

Total Utility

The total satisfaction received from consuming a certain amount of goods or services.