What are the three basic economic questions each society must answer?
A. What to produce: how to produce: for whom to produce
B. How much to produce: what quality to produce: and what price to sell at
C. What to produce; how to much to produce, how to consume
D. How much goes to government: how much goes to consumers; how much is exported
Ans: A. What to produce: how to produce: for whom to produce
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Mel is thinking of going on a cruise. Mel values a cruise in nice weather at $2,000 and values a cruise in bad weather at $50. The probability of nice weather is 60 percent and the probability of bad weather is 40 percent. Trip insurance is sometimes available. If purchased, it allows travelers to delay the cruise until the weather is nice. If Mel is risk-neutral, then in the absence of trip insurance, the most she will be willing to pay for the cruise is:
A. $1,200. B. $1,000. C. $1,220. D. $1,250.
Which of the following activities is most likely to be counted in GDP?
A. Gail buys paper and crayons to donate to poor children in need of school supplies. B. Bud works hard five hours each week to make sure that his lawn always looks nice. C. Fran volunteers at the local veteran's hospital twice a month. D. Stu gave $5 to a homeless man he met in the park.
Most or all of the mark-up revenue from a quota can be captured by the government if the government auctions off import licenses.
Answer the following statement true (T) or false (F)
Say's law says that
A. consumption is greater than supply. B. people produce the goods they consume. C. desired expenditures always equal actual expenditures. D. people consume the goods they produce.