The largest component of aggregate demand is
A. net exports.
B. government spending.
C. investment.
D. consumption.
Answer: D
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What is compatibility error?
What will be an ideal response?
Suppose that a decision maker's risk attitude toward monetary gains or losses x given by the utility function U(x) = 
If there is a 10% chance that one of the decision maker's family heirlooms, valued at $5,000, will be stolen during the next year, what is the most that she would be willing to pay each year for an insurance policy that completely covers the potential loss of her cherished items?
What will be an ideal response?
Pelcher Co. maintains a $400 petty cash fund. On January 31, the fund is replenished. The accumulated receipts on that date represent $110 for office supplies, $140 for merchandise inventory, and $70 for miscellaneous expenses. There is a cash overage of $4. The journal entry to replenish the fund on January 31 is:
A. Dr. Office Supplies, $110; Dr. Merchandise inventory, $140; Dr. Miscellaneous expenses, $70; Dr. Cash over and short, $4; Cr. Petty cash, $324. B. Dr. Office Supplies, $110; Dr. Merchandise inventory, $140; Dr. Miscellaneous expenses, $70; Cr. Cash over and short, $4; Cr. Cash, $316. C. Dr. Office Supplies, $110; Dr. Merchandise inventory, $140; Dr. Miscellaneous expenses, $70; Cr. Cash over and short, $4; Cr. Petty cash, $316. D. Dr. Office Supplies, $110; Dr. Merchandise inventory, $140; Dr. Miscellaneous expenses, $70; Dr. Cash over and short, $4; Cr. Petty cash, $400. E. Dr. Office Supplies, $110; Dr. Merchandise inventory, $140; Dr. Miscellaneous expenses, $70; Dr. Cash over and short, $4; Cr. Cash, $324.
Let A and B be the events of the FDA approving and rejecting a new drug to treat hypertension, respectively. The events A and B are:
a. independent b. conditional c. unilateral d. mutually exclusive