The expected value of a basket with different outcomes is
a. the average of the values of the different outcomes.
b. the average of the values of different outcomes multiplied by the average of the probabilities of the outcomes.
c. the sum of the values of the different outcomes.
d. the sum of the value of each outcome multiplied by its probability.
d. the sum of the value of each outcome multiplied by its probability.
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Which of the following types of economic regulation is most likely to encourage a natural monopoly to NOT inflate its costs?
A) average cost pricing rule B) rate of return regulation C) price cap regulation D) None of the above encourages cost cutting.
A tariff which is set up as a percent of the value of the imported good is a(n)
a. Specific Tariff. b. Protective Tariff. c. Embargo Tariff. d. Ad Valor em Tariff.
According to the law of diminishing returns, if population grows, but the amount of available resources stays the same, output will ______.
a. fall at an inverse rate b. stay the same c. rise, but by ever shrinking amounts d. rise at a steady rate
According to the endowment effect, people are unwilling to sell a good they already own in which of the following situations?
a. if they are offered a price greater than the price they would pay if they did not already own the good b. if they are offered a price lower than the price they would have to pay to replace the good c. if they can't replace the good d. if the good was a gift that had great sentimental value