Alex, who is risk-neutral, is looking for a one-bedroom apartment to rent for the month of August while he's on vacation in Seattle. All of the one-bedroom apartments in the neighborhood where he wants to stay are of equal quality, but 70 percent rent for $700 per month, 20 percent rent for $600 per month, and 10 percent rent for $500 per month. The first apartment Alex finds rents for $700 per month. If the cost to Alex of searching for an apartment is $40, then searching for another apartment is a gamble with an expected value of:
A. $20.
B. $0.
C. -$10.
D. $10.
Answer: B
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It is estimated that occupational segregation accounts for less than one-quarter of the wage gap between men and women
Indicate whether the statement is true or false
When demand is relatively inelastic, a 5% increase in price will:
a. increase total revenue by more than 5%. b. increase total revenue by less than 5%. c. decrease total revenue by more than 5%. d. decrease total revenue by more than 5%.
Figure 32-1
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In Figure 32-1, there are four levels of income. G is government expenditures and TT is taxes less transfers. At which level of income is the actual deficit the greatest?
A. Y4 B. Y3 C. Y2 D. Y1
Which of the following might be used to protect a monopoly from competition?
A.) A horizontal demand curve. B.) Marginal revenue. C.) A patent. D.) A contestable market.