You are a hotel manager and you are considering four projects that yield different payoffs, depending upon whether there is an economic boom or a recession. The potential payoffs and corresponding payoffs are summarized in the following table. ProjectBoom (50%)Recession (50%)A$20-$10B-$10$20C$30-$30D$50$50A risk-loving manager will prefer project:
A. A.
B. B.
C. C.
D. D.
Answer: D
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Compared to their percentage shares in 1968, over the next 40 years, the percentage shares of each of the lowest four quintiles
A. rose substantially. B. rose somewhat. C. stayed about the same. D. declined.
State and local governments generate most of their revenues through
A. Inventory and excise taxes. B. Corporate profit taxes. C. Sales and property taxes. D. Income taxes.
A seller is willing to sell a product only if the seller receives a price that is at least as great as the
a. seller's producer surplus. b. seller's cost of production. c. seller's profit. d. average willingness to pay of buyers of the product.
In the case of a technology spillover, internalizing a positive externality through a government subsidy will cause the industry's supply curve to
a. shift up by an amount equal to the subsidy. b. shift down by an amount less than the subsidy. c. shift down by an amount equal to the subsidy. d. shift down by an amount greater than the subsidy.