Dante has two possible routes to travel on a business trip. One is more direct but more exhausting, taking one day but with a probability of business success of 1/4. The second takes three days, but has a probability of success of 2/3
If the value of Dante's time is $1000/day, the value of the business success is $12,000, and Dante is risk neutral, A) it doesn't matter which path he takes, because he doesn't consider risk.
B) he should take the 1-day trip, because he doesn't consider risk.
C) he should take the 1-day trip, because $11,000 is greater than $9,000.
D) he should take the 3-day trip, because it will increase his expected net revenue by $3,000.
E) he should take the 3-day trip, because it will increase his expected net revenue by $5,000.
D
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The retirement effect is
A. when people retire later than they normally would have due to Social Security. B. when people decide not to retire at all because of problems with Social Security. C. when people retire earlier than they normally would have due to Social Security. D. when people save less for their retirement due to Social Security.
Economics is a part of the
A) social sciences. B) natural sciences. C) biological sciences. D) organizational sciences.
Suppose that Bill and Ted use a tit-for-tat scheme to encourage cartel pricing and Bill chooses the low price for a single month. Bill and Ted will deviate from cartel pricing for two months.
Answer the following statement true (T) or false (F)
Refer to the information provided in Figure 24.4 below to answer the question(s) that follow.
Figure 24.4Refer to Figure 24.4. What is the value of the tax multiplier?
A. -9 B. -8 C. -4 D. -2