A lottery game pays $500 with .001 probability and $0 otherwise. The variance of the payout is
A) 15.8.
B) 249.50.
C) 249.75.
D) 499.
C
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Which of the following would not shift the supply curve?
A) A rise in the price of the good B) A fall in the expected future price of the good C) A rise in the costs of production of the good D) A negative supply shock that destroys a portion of output
Suppose residents of Toadhop live on the Quabache River, a river prone to flooding. Suppose there are 1000 (type A) people who value flood control more than the 1000 (type B) people. Type A Demand QD = 100 ? P Type B Demand QD = 50 ? P Where Q measures the quality of flood control. If the price of a unit of flood control is $100,000 and the citizens of Toadhop gather for a townhall meeting to
find the socially optimal level of flood control, and they are successful, how much will type B individuals contribute per unit of flood control? a. 25 b. 50 c. 75 d. 100
Stagflation is:
A. high inflation despite low economic growth and low unemployment. B. low economic growth, despite low inflation and low unemployment. C. high unemployment, despite low inflation and low economic growth. D. high inflation along with low economic growth and high unemployment.
The GDP gap is:
a. the product of the potential real GDP and the equilibrium level of real GDP. b. the distance between the current level of real gross domestic product and full employment real GDP. c. the difference between potential real GDP and the equilibrium level of real GDP. d. the difference between the present value of all of government's projected financial obligations and the present value of all projected future tax and other receipts. e. the difference between the actual output of an economy and its potential output.