You took a summer job as a salesperson in a shoe store with the knowledge that you will either make $2,000 or $3,500 with probabilities 0.4 and 0.6 respectively. What is your expected income for the summer job?
A) $2,000
B) $3,000
C) $5,000
D) $2,900
D
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Suppose Kelly and Jerry are at an allocation bundle where their MRS are not equal
a. they are an equilibrium. b. there are gains from trade. c. they are happy. d. they are outside the Edgeworth box. e. they are trading.
Velocity is the rate at which money changes hands.
Answer the following statement true (T) or false (F)
U.S. automakers have an interest to make it more difficult for European competitors to locate assembly plants in Canada or Mexico and thereby ship finished automobiles to the United States duty-free. This is an example of
A) trade deflection. B) trade diversion. C) quotas. D) rules of origin.
An issue that proposals for international reform agree on is that
A) the IMF should intervene more in financial crises. B) there must be a lender of last resort. C) IMF quotas are currently set at an appropriate level. D) the Basel capital requirements for banks should be increased.