Cast Out Co

question 20

Multiple Choice

Cast Out Co.invested $37,900 in a project.At the end of three years,the company sold the project for $62,500.What annual rate of return did the firm earn on this project?

• A)16.91%
• B)19.20%
• C)18.14%
• D)18.67%
• E)17.47%

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Definitions:

Income Effect

The change in an individual's or economy's income and how that change will impact the quantity demanded of a good or service.

Inferior Good

A good, such as used clothes, for which demand decreases, or shifts leftward, as consumer income rises.

Potatoes

A starchy tuber vegetable grown and consumed worldwide, serving as a staple food in many cultures.

Demand Curve

A graphical representation of the relationship between the price of a good and the quantity demanded by consumers.