Refer to the data provided in Table 17.5 below to answer the following question(s). The table shows the relationship between income and utility for Lucy.
Table 17.5 IncomeTotal Utility $00$10,00010$20,00020$30,00030$40,00040Refer to Table 17.5. Lucy earns $20,000 annually. She has the opportunity to bet her entire salary on the upcoming super bowl. If Lucy takes the bet, she will pick the Packers. She believes that the Packers have a 50-50 chance of winning the game. If the Packers win, then Lucy will win $38,000. However, if they lose she loses her entire salary ($0). Will Lucy take the bet?
A. yes
B. no
C. maybe
D. indeterminate from the given information
Answer: B
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Direct controls work only if the legal system imposes substantial penalties on violators.
Answer the following statement true (T) or false (F)
If the central bank targets the interest rate, it
a. must decrease interest rates in response to an increase in money demand. b. rules out the possibility of runaway inflation. b. can lead to runaway inflation if maintained too rigidly. d. Both a and c e. Both b and c
Which of the following is correct?
a. The Fed has very good control over the money supply and bank reserves. b. The Fed has very poor control over the money supply and bank reserves. c. The Fed has very good control over bank reserves but not over the money supply. d. The Fed has very good control over the money supply but not over bank reserves.
The Secretary of Labor states that wage rates in the country have risen by 2 percent this past year. The head of a local labor union states that wage gains should have been higher. The Secretary's statement is a(n) ____ economic statement, and the labor head's statement is a(n) ____ economic statement
a. normative; normative b. normative; positive c. positive; normative d. positive; positive e. proper; improper