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 higher risk.
B. the one with lower risk.
C. the one with the higher opportunity cost.
D. the one with the lower future value.
Answer: B
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After Suzie, owner of Suzie's Sweet Shop, hires her 8th worker the average product of labor declines. Which of the following statements must be true?
A) The average product of labor is negative. B) The marginal product of the 8th worker is negative. C) The marginal product of the 8th worker is less than the average product of labor before the 8th worker was hired. D) Suzie's profits would be greater if she did not hire the 8th worker.
The larger the fraction of an investment financed by borrowing, the greater the potential for both profits and losses from that investment
a. True b. False Indicate whether the statement is true or false
If GDP is too high relative to potential GDP, which of the following happens?
A. Inflation rises B. Unemployment rises C. A recession begins D. Deflation occurs
Deterrence quantity is always equal to the zero profit quantity.
Answer the following statement true (T) or false (F)