Six possibilities are equally likely and have payoffs of $2, $4, $6, $8, $10, and $12 . The expected value is:
a. $4
b. $5
c. $6
d. $7
d
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Which of the following factors are held constant for a given demand curve for a good?
A. The price of the good B. The technology used to produce the good C. The supply of the good D. Consumer incomes and the prices of other goods
Over-fishing of common fishing grounds happens because fishing grounds are a common property and social and private incentive are the same
Indicate whether the statement is true or false
Answer the following statements true (T) or false (F)
1. Changes in the level of inventories are an internal force in the economy’s cyclical movements. 2. Cost changes generally lag behind price changes during the business cycle. 3. A recession occurs whenever there’s a decline in real GDP for two or more successive quarters. 4. Involuntary inventory accumulation may occur during the contracting phase of the business cycle. 5. Psychological forces have no effect on business fluctuations.
The economic role of the legal system might best be described as
A) promoting the productive efficiency of competitive markets. B) identifying and producing public goods. C) establishing the "rules of the game" and acting as a referee when disputes arise among market participants. D) identifying and producing merit goods.