People generally view leisure
a. as an inferior good
b. as a normal good
c. as a source of disutility
d. as more valuable per unit the more they have of it
e. as unrelated to utility maximization
B
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According to this Application, the recent result of the harmattan was to ________ the equilibrium price and ________ the equilibrium quantity of cocoa
A) increase; decrease B) decrease; increase C) increase; increase D) decrease; decrease
In the 1970s and 1980s policies that required retirement of people over age 65 were repealed. Which variable would this directly affect?
a. The employment-population ratio b. Productivity c. Average hours d. Population e. Technology
When the central bank lowers the reserve requirement on deposits, _____
a. the money supply in an economy increases and interest rates decrease b. both the money supply and interest rates in an economy decrease c. both the money supply and interest rates in an economy increase d. the money supply in an economy decreases and interest rates increase
Suppose Jack and Kate are at the town fair and are choosing which game to play. The first game has a bag with four marbles in it-1 red marble and 3 blue ones. The player draws one marble from the bag; if it is red, they win $20 and if it is blue, they win $1. The second game has a bag with 10 marbles in it-1 red, 4 blue, and 5 green. The player draws one marble from the bag; if it is red, they win $20; if it is blue, they win $5; and if it is green, they win $1. Both games cost $5 to play. Jack is considering whether to play the first game. If Jack only cares about the expected value of the outcome and does not care about risk, he should:
A. not play the game, since it costs $5 and the expected payoff is $5.75. B. play the game since it costs $5.75 and the expected payoff is $5. C. not play the game since it costs $5.75 and the expected payoff is $5. D. play the game since it costs $5, and the expected payoff is $5.75.