The above figure shows Bob's utility function. He currently has $100 of wealth, but there is a 50% chance that it could all be stolen. Bob will buy theft insurance to cover the full $100
A) as long as it does not cost more than $25.
B) as long as it does not cost more than $50.
C) as long as it does not cost more than $70.
D) at any price.
C
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Capacity utilization increases. What is the impact on aggregate expenditures and income?
A) Both increase. B) Both decrease. C) Aggregate expenditure increases and income decreases. D) Aggregate expenditure decreases and income increases.
Which of the following will be the best example of a monopoly firm?
a. The US Bank b. The Bank of America c. National City Bank d. The Federal Reserve e. Washington Mutual Funds Bank
As a fishing firm hires its first, second, and third workers, it could find that marginal product actually rises. The reason for this is
a. diminishing returns have set in b. the division of labor creates greater productivity c. the firm has hired another boat d. all tasks are shared by all workers e. less qualified workers are becoming available
Which of the following products has the most elastic demand?
A. Raspberry Mocha Kona coffee blend at Starbuck's B. Starbuck's coffee C. coffee D. all beverages