An individual receives $100 if the outcome of a coin toss is heads. If the outcome of the coin toss is tails, he loses $50. If the individual weights future loses by a special factor of 2, what is the psychological value of this coin toss?
What will be an ideal response?
Probability of getting heads = 1/2.
Probability of getting tails = 1/2.
Psychological value of this coin toss = 1/2 × $100 + 1/2 × -($50 ) × 2 = 50 - 50 = $0.
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A) no movement along the aggregate demand curve and no shift in the aggregate demand curve. B) an upward movement along the aggregate demand curve. C) a downward movement along the aggregate demand curve. D) a rightward shift in the aggregate demand curve. E) a leftward shift in the aggregate demand curve.
A possible reconciliation of the Leontief Paradox is that the United States has high tariffs on capital intensive goods and low tariffs on labor intensive goods
Indicate whether the statement is true or false
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A) used by economic decision-makers to inform others about their plans. B) the method by which government planners inform economic decision-makers about the types of decisions they should make. C) the method by which firms determine their profit maximizing quantity. D) compact ways of conveying to economic decision makers information needed to identify industries where more resources are needed.
Given the availability of California oranges, demand for Florida oranges will
a. be less elastic than if there were no California oranges b. be more elastic than if there were no California oranges c. have the same elasticity as it would if there were no California oranges d. be perfectly elastic e. be perfectly inelastic