Advantages of Using Simulation Include

question 153

Multiple Choice

Advantages of using simulation include

• A) adjustment for risk in the resulting distribution of net present values.
• B) a range of possible outcomes presented.
• C) is good only for single period investments since discounting is not possible.
• D) graphically displays all possible outcomes of the investment.

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Definitions:

Oil Import Tax

A tax imposed by a country on the import of oil, aimed at increasing the cost of imported oil relative to domestically produced oil.

Marginal Utility

The increase in happiness or usefulness experienced by an individual upon consuming an extra unit of a particular good or service.

Calculus

A branch of mathematics that deals with the study of change and motion, using derivatives and integrals as fundamental tools.

Consumption Increase

An economic scenario where there is a rise in the amount of goods and services consumed by individuals or households over a period.