Economists assume that, in general, when individuals are faced with two choices that have the same expected value, they will prefer:
A. the one with lower risk.
B. the one with higher risk.
C. the one with the higher opportunity cost.
D. the one with the lower future value.
A. the one with lower risk.
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Suppose the CPI in 1983 is 100 and the CPI this year is 172. These values for the CPI mean that
A) inflation between the two years was 172 percent. B) typically, a good whose price was $100 in 1983 had a price of $172 this year. C) typically, a good whose price was $172 in 1983 had a price of $100 this year. D) typically, a good whose price was $100 in 1983 had a price of $139 this year. E) typically, a good whose price was $100 in 1983 had a price of $58 this year.
The story in the text about playing tennis outside even though you paid for an inside court illustrates which of the following?
A. Rational choice analysis is what comes naturally to most people. B. Psychologically, people often do not treat sunk cost as irrelevant to a decision. C. People will make efficient decisions without knowing what they are doing. D. All of these are implied by the tennis court story.
The sum of accumulated annual federal budget deficits in excess of budget surpluses refers to...
What will be an ideal response?
Refer to Figure 4.1, which shows Molly's and Ryan's individual demand curves for compact discs per month. Assuming Molly and Ryan are the only consumers in the market, if the market quantity demanded is 5, the price must be:
A. $3. B. $6. C. $9. D. $12.