Define (a) sensitivity analysis, (b) scenario analysis, and (c) simulation analysis. If GE were considering two projects (one for 500 million dollars to develop a satellite communications system and the other for 30,000 dollars for a new truck), on which would the company be more likely to use a simulation analysis?

True or False: Investment contributes to economic growth.

What are Adam Smith's Economic theories called today?

What economic system has the most private ownership of the factors of production?

Explain the difference between break-even analysis and target profit analysis.

In Pennsylvania, wine and liquor can only be purchased from "state stores"" which are stores that are owned and operated by the state government. According to an analysis by Katja Seim of the University of Pennsylvania and Joel Waldfogel of the University of Minnesota, if the state of Pennsylvania were to allow unlimited entry of private liquor stores, the number of stores would increase by 2.5 times and consumer surplus would increase by 9 percent. Are these results sufficient to decide whether the state of Pennsylvania should abolish the system of state stores and allow free entry of private stores? In your answer, discuss the distinction between positive and normative analysis. Source: Katja Selm and joel Waldfogel, "Public Monopoly and Economic Efficiency: Evidence from the Pennsylvania L.iquor Control Board's Entry Dectstons," Amerlcan Economic Review, Vol. 103, No. 2, Aprll 2013, pp. 811-862

Huang Industries is considering a proposed project whose estimated NPV is 12 million dollars. This estimate assumes that economic conditions will be "average." However, the CFO realizes that conditions could be better or worse, so she performed a scenario analysis and obtained these results:

$$\begin{array}{lcc} \text { Economic Scenario } & \text { Probability of Outcome } & \text { NPV } \\ \hline \text { Recession } & 0.05 & \text { (70 million dollars) } \\ \text { Below average } & 0.20 & (25 \text { million) } \\ \text { Average } & 0.50 & 12 \text { million } \\ \text { Above average } & 0.20 & 20 \text { million } \\ \text { Boom } & 0.05 & 30 \text { million } \end{array}$$

Calculate the project's expected NPV, standard deviation, and coefficient of variation.

What was the first action Roosevelt took to address the nation's economic crisis?

Define scenario, sensitivity, and simulation analysis.

Explain the concept of economic interdependence of nations.

Explain the relationship between energy and economic development.

Which statement is not true of full employment output?
a. It represents an economy's maximum sustainable output level.
b. It is also called potential GDP.
c. It is the economic output when unemployment is at zero.
d. It is the economic output when unemployment is at its natural rate.

Why is sales mix important to multiproduct CVP analysis? Explain how sales mix is factored into CVP analysis.

What was the basis for the economic growth of the 1920s?