The criteria of Expected Monetary Value (EMV) is used for making decisions when
a. you are certain of the outcome.
b. you have no knowledge of possible outcomes.
c. you can assign a probability to each outcome.
d. all of the above
e. none of the above
d. all of the above
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If the GDP deflator is less than 100, which will be higher: nominal GDP or real GDP? Why?
What will be an ideal response?
If productivity growth accelerates, but workers do not realize it ________
A) they will expect large wage hikes B) they will not expect large wage hikes C) the natural rate of unemployment will rise D) the number of discouraged workers will rise
Refer to the information below. If the firms compete, what is the equilibrium price in the market?
A small nation has three gasoline suppliers with a linear monthly market demand equal to: Q = 500,000 - 5P. Each firm's marginal cost (MC) and average total cost (ATC) curves are horizontal at $10,000 per month. A) $100,000 B) $500 C) $50,000 D) $10,000
Cal has a choice between two gambles. The first gamble offers a 50 percent chance of winning $20 and a 50 percent chance of losing $20. The second gamble offers a 20 percent chance of winning $100 and an 80% chance of losing $20. Which choice has the higher expected value?
A. The expected value of both gambles is the same, but Cal would prefer the first gamble since the chances of winning are higher. B. The expected value of the first gamble is higher. C. The expected value of the second gamble is higher. D. The expected value of both gambles is the same, so Cal would be indifferent between the two.