John's utility of wealth curve is shown in the above figure. He currently has wealth of $20,000. If there is a 10 percent chance that he could lose all his wealth, what is his expected wealth?
A) $0
B) $2,000
C) $17,000
D) $18,000
D
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Refer to the table above. Which is the optimum location for the firm to set up its factory?
A) Far B) Close C) Very Far D) Very Close
According to the neoclassical growth model, if a country makes a policy change to increase its savings rate, in the new steady state:
a. output per worker will grow faster than before. b. output per worker will grow at the rate of technology growth. c. capital per worker will be permanently higher. d. all of the above.
In the long run, a monopolistically competitive industry is characterized by all of the following, except
A. firms earning zero economic profits. B. production that would exhibit lower costs per unit at higher output levels. C. an efficient use of resources. D. firms producing where price is above marginal cost.
Which of the following represents a rent ceiling?
A. Bluestone Properties is permitted to charge a rent of $2,250 for 2-bedroom apartments that would be rent for $2,500 in an unregulated market B. A housing shortage due to floods last summer has resulted in a rise in apartment rents in Denver C. In LA, tenants have to pay a rent as high as $2,200 per month, so people prefer buying houses. D. The interest on mortgage loans has gone up to 4.87 percent in 2013