Blanca has her choice of either a certain income of $20,000 or a gamble with a 0.5 probability of $10,000 and a 0.5 probability of $30,000. The expected value of the gamble:
A) is less than $20,000.
B) is $20,000.
C) is greater than $20,000.
D) cannot be determined with the information provided.
B
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In the model of monopolistic competition, if firms have ________ average cost curves, then opening trade will ________ the total number of firms and ________ the average price
A) downward sloping; decrease; decrease B) downward sloping; decrease; increase C) downward sloping; increase; decrease D) upward sloping; decrease; increase E) upward sloping; increase; decrease
Suppose the market demand elasticity is constant at -2, and there are three identical firms in the oligopolistic market. A Cournot firm's MPL = 1.2L-0.5, then the labor demand for a Cournot firm is
A) PL-0.5. B) 0.6PL-0.5. C) 0.2PL-2. D) PL-2.
All of the following are true about the basic money supply except:
A. It includes credit card balances. B. It includes currency held by the public. C. It includes money kept in transactions accounts. D. It is known as M1.
Buying a stock on margin will
A. guarantee gains regardless of whether a stock goes up or down in price B. increase gains if the stock rises C. result in a gain of the stock falls D. will have no impact on stock returns