In economics, risk is said to exist when:
A) the outcome of an activity is not known with certainty.
B) the cost of producing a good exceeds its market price.
C) net present value of an outcome is positive.
D) the probability of an outcome is one.
A
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Relative to the situation in many other nations, the United States government plays a _______ role in its economy.
A. small B. large C. comparable D. nonexistent
In principle, how do we determine a perfectly competitive firm's profit-maximizing output and maximum profits given information about the market clearing price, and about the marginal cost and average total cost curves of the firm? Explain in words
What will be an ideal response?
If farm price supports gave farmers 80 percent parity in 1950 and 60 percent parity in 1975, then we know that
a. the ratio of farm income to nonfarm income was higher in 1975 than in 1950 b. the ratio of farm income to nonfarm income was higher in 1950 than in 1975 c. the ratio of farm prices to nonfarm prices was higher in 1975 than in 1950 d. the ratio of farm prices to nonfarm prices was higher in 1950 than in 1975 e. farmers were better off in 1975 than in 1950
Beginning from full-employment equilibrium, illustrate graphically how each of the following would impact the economy
a. the short-run impact of an unanticipated decrease in the money supply b. the long-run impact of an unanticipated decrease in the money supply