Michelle invested $50 in a project that has a 40% chance of being worth $80 and a 60% chance of being worth $20. One can conclude that Michelle is
A) risk averse.
B) risk neutral.
C) risk loving.
D) extremely wealthy.
C
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Only a market economy must answer the questions of what goods to produce, how to produce them, and for whom to produce them.
Answer the following statement true (T) or false (F)
When leisure is a normal good, the income effect from a decrease in wages is evident in
a. a desire to consume more leisure. b. a desire to consume less leisure. c. an upward-sloping labor-supply curve. d. a shift in labor demand.
Cyclical unemployment originates with an imbalance between injections and leakages, not the absolute size of injections or leakages.
Answer the following statement true (T) or false (F)
If the United States exports $250 billion worth of goods and imports $420 billion worth of goods
A) the balance of payments will be -$170 billion. B) the balance of trade will be -$170 billion. C) the balance of trade will be $670 billion. D) the official reserve transaction will be $170 billion.