An investor puts $2,000 into an investment that will pay $2,500 one-fourth of the time; $2,000 one-half of the time, and $1,750 the rest of the time. What is the investor's expected return?
A. 12.5%
B. 3.125%
C. $250.00
D. 6.25%
Answer: B
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If the economy is experiencing an economic boom, which point in the graph shown would likely represent this?
A. E1
B. E2
C. E3
D. E4
Suppose a consumer knows that at her current bundle, MUx/Px > MUy/Py. Is this individual choosing a bundle that maximizes utility? a. Yes, because this individual values good X more than good Y
b. Yes, because this individual values good Y more than good X. c. No. This individual should shift consumption from good X to good Y. d. No. This individual should shift consumption from good Y to good X.
In the short run, the additional output that results from hiring an additional unit of a variable input is the
A. average product. B. marginal cost. C. marginal product. D. average variable cost.
As an individual's consumption of a good increases
A) his or her total utility increases. B) his or her marginal utility increases. C) the price of the good increases. D) All of the above answers are correct.