Consider the following game. You pick a card from a standard 52-card deck and each time you select an ace, you get $520. For all other cards you must pay $26. This game is not a fair bet.
Answer the following statement true (T) or false (F)
True
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Suppose the average person needs 8 glasses of water each day to maintain optimal health. What would an economist conclude?
A) The average person will therefore drink 8 glasses each day. B) The average person will therefore drink more than 8 glasses each day, just to play it safe. C) There are no substitutes for water. D) The amount the average person drinks will depend upon the opportunity cost of acquiring water.
Which of the following pairs is the best example of complements?
a. Coffee and tea. b. DVDs and tapes. c. Hiking boots and athletic shoes. d. Tortillas and salsa.
An appropriate Keynesian response to a recessionary gap is to: a. decrease net taxes
b. decrease government spending. c. increase interest rates. d. increase the cash reserve ratio.
A tariff is
A) a subsidy on domestically produced goods. B) the difference between the world market price and the domestic price when a group of firms in an industry collude successfully. C) a tax on imported goods. D) a government imposed restriction on the quantity of a specific good that can be imported into the country and sold.