Suppose that the cost of installing an overhead pedestrian walkway in a college town is $150,000 . The walkway is expected to reduce the risk of fatality by 1.5 percent, and the cost of a human life is estimated at $10 million. The town should
a. install the walkway because the estimated benefit is twice the cost.
b. be indifferent between installing and not installing the walkway because the estimated benefit equals the cost.
c. not install the walkway, since the cost is twice the estimated benefit.
d. install the walkway, since the cost of even a single life is too great not to take action.
b
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During World War II, prisoners of war used ________ as money
A) chocolate B) cigarettes C) bullets D) cowrie shells
In 1939 the U.S. economy was operating at point ________.
A. A
B. B
C. C
D. D
The multiplier effect on aggregate demand of a tax cut is less than the multiplier effect of an equal increase in government spending
Indicate whether the statement is true or false
Suppose that you are short in the cash market. Which of the following strategies creates a price ceiling for your purchased corn?
A. Take a long position in the futures market. B. Take a short position in the futures market. C. Buy a put option. D. Buy a call option.