Calculate the Nominal Percent Return from an Investment of $300

question 32

Multiple Choice

Calculate the nominal percent return from an investment of $300 in a share whose price increases to $375 after a year.

• A) 75%
• B) 20%
• C) 25%
• D) 16.67%

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Definitions:

Creative Destruction

A concept in economics that refers to the process by which new innovations lead to the demise of old technologies and economic structures, driving economic growth through renewal.

Joseph Schumpeter

Joseph Schumpeter was a 20th-century economist known for his theories on business cycles, innovation, and the concept of "creative destruction."

Alfred Marshall

A prominent British economist known for his significant contributions to the principles of microeconomics.

Purely Competitive Firm

A company that operates in a market where there are many buyers and sellers, each selling a homogeneous product with no single seller or buyer having the market power to influence prices.