The fact that we observe a trade-off between risk and return is puzzling to economists, because that observation conflicts with the notion that most people are risk averse
a. True
b. False
Indicate whether the statement is true or false
False
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Direct controls are considered inefficient because all firms are forced to pay the same costs.
Answer the following statement true (T) or false (F)
Consider a firm whose final output (and sales) in a particular year has a value of $1,200
To produce these goods, the firm used $500 worth of intermediate goods it had purchased in previous years plus $200 worth of newly-purchased intermediate goods. In the subsequent year, this same firm again sells $1,200 worth of final goods, but in this year has purchased $700 worth of intermediate goods, of which $100 is not used in current production but, rather, added to the firm's inventory. For each of these two years, calculate the value added by this firm. For each of these two years, calculate the contribution of this firm to the economy's GDP.
If the interest rate is 8 percent, a person who is offered the opportunity to buy an annuity paying $30,000 per year forever should
a. do so if the price is greater than $375,000 b. do so if the price is less than $375,000 c. be willing to pay only $37,037 for it d. be willing to pay $77,037 for it e. be willing to pay no more than $300,000 for it
Which of the following is an example of an industrial union?
A. The United Auto Workers. B. The AFL-CIO. C. The International Brotherhood of Electrical Workers. D. The Carpenters Union.