Suppose there's a 50% chance of a stock rising by 20% and a 50% chance of it falling by 20%. What is the expected rate of return on the stock?
A) -20%
B) 0%
C) 10%
D) 20%
B
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Which of the following is not a tax-deferred saving method?
a. IRAs b. Keogh plans c. 403(b) plans d. Kemp IRA
Manufacturers of packaged foods are not required to list nutritional contents on their labels
Indicate whether the statement is true or false
Why can't two firms in a Prisoners' Dilemma enforce a better outcome that has higher payoffs?
A) Under an outcome with higher payoffs, the outcome is not a Nash equilibrium and each firm has an incentive to change their actions. B) Barriers to entry C) Barriers to exit D) The Nash equilibrium in a Prisoners' Dilemma has the highest possible payoffs for both firms.
The task of deciding which consumer gets each of the goods produced in a free-market economy is solved by
A. the price system. B. the industries that produce the goods. C. the central planners. D. citizens with political power.