Dan has a car valued at $10,000 that gives him a utility of 50 units. There is a 10 percent chance that he will have an accident that will make his car worthless, in which case his utility will be zero
His utility from a wealth of $7,000 is 45 units. The maximum amount Dan will be willing to pay for car insurance is A) $1,000.
B) $3,000.
C) $7,000.
D) zero.
B
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The change in a firm's total revenue that results from hiring an additional worker is measured by the
A. average revenue product. B. marginal product. C. marginal revenue. D. marginal revenue product.
Bank regulators are concerned about the safety of depositors because
A. bank failures were common throughout most of the U.S. history and have even occurred in recent decades. B. in the absence of federal insurance, depositors would lose their money if a bank failed. C. nervous depositors may rush to withdraw their accounts and produce a “run” that could threaten even a sound bank. D. All of these responses are correct.
If the budget line shifts from BB to bb in the diagram, we can infer that the:
A. price of Y has increased and the price of X has decreased.
B. price of Y has decreased and the price of X has increased.
C. prices of both X and Y have increased.
D. prices of both X and Y have decreased.
Which of the following is a recommended policy for industrially advanced countries to adopt to foster economic growth in DVCs?
A. Admitting more temporary workers from DVCs B. Reducing the amount of debt relief for DVCs to make them less dependent C. Eliminating loans from the World Bank because it encourages bureaucracy D. Eliminating financial control of central banks where they have been established