Up to what amount would a risk-neutral gambler pay to enter a game where on the flip of a fair coin, if you call the correct outcome the payoff is $2,000?
A. Up to $2,000.
B. Up to $1,000.
C. More than $1000 but less than $2000.
D. More than $1,500.
Answer: B
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How can increases in a country's total income improve health?
What will be an ideal response?
Assuming free trade between countries, exchange rates will change so that goods cost the same in all countries. This concept is known as the
a. long-run equilibrium theory. b. exchange rate equalization theory. c. interest rate parity theory. d. purchasing power parity theory.
The quantity of money demanded
A) is infinite. B) is directly controlled by the Fed. C) has no opportunity cost. D) is the quantity that balances the benefit of holding an additional dollar of money against the opportunity cost of doing so. E) changes very infrequently.
If demand for personal computers increases as a result of an increase in income,
a. personal computers must be a normal good b. personal computers must be an inferior good c. personal computers must be a complement d. the substitutes for personal computers must be inferior goods e. the substitution effect is larger than the income effect