Use the Information for the Question(s)below

question 2

Multiple Choice

Use the information for the question(s) below.
Consider an economy with two types of firms,S and I.S firms always move together,but I firms move independently of each other.For both types of firm there is a 70% probability that the firm will have a 20% return and a 30% probability that the firm will have a -30% return.
-The standard deviation for the return on an individual firm is closest to:

• A)23.0%.
• B)5.25%.
• C)15.0%.
• D)10.0%.

Understand the policies and significance of the Northwest Ordinance of 1787.

Recognize the challenges and responses related to American navigation rights and economic policies under the Articles of Confederation.

Comprehend the role and responsibilities conferred by the Constitution on different branches of government and specific positions.

Reflect on key concepts like the large republic advantage theory, major Constitutional compromises, and foundational fiscal policies.

---

Definitions:

Taxes Affect

Describes how taxes influence economic decisions and behaviours of individuals and businesses, including consumption, investment, and savings.

Labor Supply

The total hours that workers are willing and able to work at a given wage rate, within an economy.

Inelastic

A situation in which the demand or supply for a good or service is relatively unresponsive to changes in price.

Deadweight Loss

A decline in economic effectiveness that happens when a good or service does not reach or cannot reach market equilibrium.