Anna's Antiques expects to get two bidders for the unique china teacup it sells. Each of the bidders can either have a high-value of $100 or a low-value of $70 with equal probability. What combinations of customers can Anna expect?
a. High value, high value
b. High value, low value
c. Low value, low value
d. All of the above
d
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A goal of very high employment may lead to ________
A) inflationary monetary policy B) inflationary fiscal policy C) demand-pull inflation D) all of the above E) none of the above
The government's $168 billion plan to stimulate the softening economy in 2008 failed partly because the tax cuts were temporary
a. True b. False Indicate whether the statement is true or false
John likes to buy cola every month. He prefers to spend $0.10 per can, but is willing to spend as much as $0.15 per can. Usually, a can of cola costs $0.12 . However, due to decreased demand, the price has dropped to $0.11 per can, increasing John's purchasing power. This is an example of the _____
a. income effect b. substitution effect c. accelerator effect d. wealth effect
If the market wage for fast-food restaurants is $4 and the government enforces a minimum wage of $7, the unemployment rate will
A. Increase as quantity of labor supplied increases and quantity of labor demanded decreases. B. Not be affected by the minimum wage. C. Increase as quantity of labor supplied increases and quantity of labor demanded increases. D. Increase as quantity of labor supplied decreases and quantity of labor demanded increases.