Uni-Go Company makes motorized unicycles. Uni-Go is deciding whether to include a safety feature that would cost $6 for each unicycle
Uni-Go estimates the probability of death without the safety feature is 1/90,000 and the death cost per unicycle is $5.55. Uni-Go's cost-benefit recommendation is to A) add the safety device.
B) not add the safety device.
C) add the safety device plus additional safety devices.
D) not produce the unicycle.
B
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A statistical technique used to isolate the individual effects of a number of factors on a single outcome is called
A) the audit method. B) regression analysis. C) statistical discrimination. D) taste-based discrimination.
After its early success in the 1970s, OPEC experienced a drop in world oil prices and a corresponding drop in oil revenues for its members, due to
A. the fall of the elasticity of demand for oil. B. the growth in the number of oil buyers. C. OPEC members failing to produce the output that was agreed upon. D. a sharp rise in the demand for oil.
According to the theory of liquidity preference, if output decreases
a. people want to hold more money. This response is shown as a movement along the money demand curve. b. people want to hold more money. This response is shown as a shift of the money demand curve. c. people want to hold less money. This response is shown as a movement along the money demand curve. d. people want to hold less money. This response is shown as a shift of the money demand curve.
In Figure 22.2 and ignoring any possible externalities, the net benefit to society of this market is 
A. 0P*CQ* B. ABC C. 0BCQ* D. BP*C