The BP schedule will be steeper the
a. more responsive capital flows are to the interest rate.
b. less responsive capital flows are to the interest rate.
c. smaller the marginal propensity to import.
d. less likely an expansionary fiscal policy will lead to a balance of payments deficit.
B
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JC's music production company provides artists with studio time and a backing band to record with. In providing the rhythm track, JC can employ drum machines or drummers
Regardless of the quantity of output JC produces, he can substitute two drummers with one drum machine—drum machines tire out less quickly). Draw a few isoquant lines (with numbers) reflecting this production function for the rhythm track. Determine the function representing this production process.
In reality, it is ________ that managers flip a coin to make decisions; but actual randomness ________ desirable in certain situations.
A) common; can B) rare; cannot C) rare; can D) common; cannot
A 65 percent chance of winning $10 and a 35 percent chance of losing $5 would be classified as a(n)
A. fair gamble. B. worse-than-fair gamble. C. unfair gamble. D. better-than-fair gamble.
Alex, who is risk-neutral, is looking for a one-bedroom apartment to rent for the month of August while he's on vacation in Seattle. All of the one-bedroom apartments in the neighborhood where he wants to stay are of equal quality, but 70 percent rent for $700 per month, 20 percent rent for $600 per month, and 10 percent rent for $500 per month. The first apartment Alex finds rents for $700 per month. Suppose Alex is risk-neutral. If the cost to Alex of searching for another apartment is $30, then will he search for another apartment?
A. No, because searching for another apartment is a less-than-fair gamble. B. Yes, because searching for another apartment is a better-than-fair gamble. C. Yes, because searching for another apartment is a fair gamble. D. No, because searching for another apartment is a fair gamble.