Anders Was Given a Gold Coin Originally Purchased for $1

question 113

Multiple Choice

Anders was given a gold coin originally purchased for $1 by his great-grandfather 50 years ago.Today the coin is worth $450.The rate of return realized on the sale of this coin is approximately equal to

• A)8%
• B)13%
• C)50%
• D)cannot be determined with the given information

---

Definitions:

Central Planning Board

A government body responsible for determining the allocation of resources and directing economic activity in a centrally planned economy.

Pure Capitalist Economy

An economic system where private individuals and firms control all resources, and market forces determine resource allocation with minimal government intervention.

Price Mechanism

The system by which the forces of supply and demand determine the prices of goods and services and allocate resources within an economy.

John Kenneth Galbraith

John Kenneth Galbraith was an influential Canadian-American economist and public intellectual who contributed significantly to the development of modern economic thought, particularly in the areas of consumer behavior, public policy, and economic history.