Consider the Following Three Stocks Assume at These Prices the Value-Weighted Index Constructed with the }

question 30

Multiple Choice

Consider the following three stocks: $$\begin{array} { l c c } \text { Stock } & \text { Price } & \text { Number of shares outstanding } \\\hline \text { Stock A } & \$ 40 & 200 \\\text { Stock B } & \$ 70 & 500 \\\text { Stock C } & \$ 10 & 600\end{array}$$
Assume at these prices the value-weighted index constructed with the three stocks is 490.What would the index be if stock B is split 2 for 1 and stock C 4 for 1?

• A) 265
• B) 430
• C) 355
• D) 490
• E) 1000

Understand the concept and reasons behind the downward slope of the aggregate demand curve.

Identify and distinguish between final goods and intermediate goods.

Understand the calculation and interpretation of GDP, including what is excluded or included in its calculation.

Recognize the impact of various activities and expenditures on GDP.

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Definitions:

Modeling

The process of representing or simulating real-world processes, systems, or behaviors through mathematical formulas, computer simulations, or role-playing, to study or predict outcomes.

Coming Out

The process by which individuals acknowledge and disclose their sexual orientation or gender identity to others, which can be a significant and personal journey.

Scapegoating

The practice of unfairly blaming an individual or group for problems or failures, often to divert attention from the actual causes.

Problem Consensus

Agreement among members of a group on the nature, significance, and priority of a problem that needs addressing.