Consider a game that pays 2n cents if the first tail is on the nth toss of a fair-headed coin. Determine the expected value of this game.
A. Infinite cents
B. 1 cent
C. $2
D. There is insufficient information to determine the expected value of this gamble.
Answer: A
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What will be an ideal response?
If a firm's MRP of capital > MFC, the firm should
a. lower the interest rate b. decrease its quantity demanded of loanable funds c. increase its quantity demanded of loanable funds d. hire more labor e. raise the interest rate
________ involves the direct exchange of one good for another without the use of money
a. Comparative advantage b. Barter c. Economic growth d. International trade
At the optimal or efficient level of an activity, the activity's marginal benefit must
A) be zero. B) be greater than zero. C) equal the marginal cost of the activity. D) exceed the marginal cost of the activity.