Assume Brandon's benefit function for water is S(W) = ?W and he consumes water both in droughts, WD, or in the rainy season, WR. Assume his current consumption bundle is WD = 400 and WR = 100 and the probability of drought is 0.75. Expected water consumption is:
A. 500.
B. 250.
C. 325.
D. 175.
C. 325.
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Characteristics of a perfectly competitive market include:
A. the presence of transaction costs. B. homogenous products. C. few sellers, each with a large market share. D. All of these are characteristics of a perfectly competitive market.
The International Monetary Fund advised Russia to control inflation via an exchange rate anchor
a. True b. False
The tragedy of the commons refers to:
a. the plight of the common people, who are doomed to low paying jobs and discrimination. b. the fact that public resources are becoming scarce. c. the idea that what we have in common is often not why we trade. d. the idea that when everyone has free access to a resource, it will be overused and depleted.
The military draft can be seen as an implicit tax on potential recruits and a subsidy to those who demand defense services.
Answer the following statement true (T) or false (F)