Suppose Jack and Kate are at the town fair and are choosing which game to play. The first game has a bag with four marbles in it-1 red marble and 3 blue ones. The player draws one marble from the bag; if it is red, they win $20 and if it is blue, they win $1. The second game has a bag with 10 marbles in it-1 red, 4 blue, and 5 green. The player draws one marble from the bag; if it is red, they win $20; if it is blue, they win $5; and if it is green, they win $1. Both games cost $5 to play. Kate decides to play the second game. Kate's expected value of payoff is:
A. $5.00.
B. $5.75.
C. $4.00.
D. $4.50.
Answer: D
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Refer to Mexico and Japan. Which country is the more efficient food producer, and which country is the more efficient cloth producer?
a. Mexico is the more efficient food producer, and Japan is the more efficient cloth producer.
b. Japan is the more efficient food producer, and Mexico is the more efficient cloth producer.
c. Mexico is the more efficient producer of both goods.
d. Japan is the more efficient producer of both goods.
A surplus quantity will occur when
a. quantity demanded is greater than quantity supplied. b. price is above equilibrium. c. demand is elastic. d. price is below equilibrium.
A bond issued by a local government to build a convention center that is to be financed by fees charged to users is an example of
A) commercial paper. B) a general obligation bond. C) a collateralized bond. D) a revenue bond.
Extreme global poverty is defined as ________
A) income of less than one dollar a day B) foreign debt in excess of 100% of GDP C) one percent of U.S. income D) one-fourth of U.S. income