A Panel of 64 Economists Was Asked to Predict the Average

question 124

Multiple Choice

A panel of 64 economists was asked to predict the average unemployment rate for the upcoming year. The results of the survey follow: On the basis of this survey, what does the panel expect the average unemployment rate to be next year?

• A) 2.82
• B) 2.32
• C) 2.68
• D) 3.30
• E) 3.39

---

Definitions:

Marginal Tax Rate

The rate of tax applied to your next dollar of income, indicating the percentage of tax applied to your income for each tax bracket in which you qualify.

Salvage Value

The forecasted sale price for an asset at the termination of its usability period.

MACRS Depreciation

Modified Accelerated Cost Recovery System; a method of depreciation used for tax purposes in the United States that allows for faster expense deductions.

Working Capital

The difference between a company’s current assets and current liabilities, used to fund the company's day-to-day operations.