The Occupational Safety and Health Administration (OSHA) has determined that 100 workers are exposed to a hazardous chemical used in the production of diet soft drinks. The cost of imposing a regulation that would ban the chemical is $10 million. OSHA has calculated that each person saved by this regulation has a value equal to $10 million. If the benefits are exactly equal to the costs, what
probability is OSHA using to assess the likelihood of a fatality from exposure to this chemical?
a. 0.001
b. 0.01
c. 0.1
d. 1.0
b
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Of the recessions and expansions from 1950 to 1990, the common events were
a. reactions to war and oil prices b. tax increases and tax cuts c. changes in exports d. Decreases in welfare spending e. Increases and decreases in health care spending
The Federal Trade Commission regulates which of the following?
A) unfair trade practices by businesses B) financial markets C) trade with third world countries D) the banking industry
Potential GDP
A. measures the maximum that a firm is capable of production B. increases ove time as the labor force grows C. increases over time as technological change occurs D. All of the above E. B and C only
Suppose in year 1 the CPI is 90, in year 2 the CPI is 100, and in year 3 the CPI is 110. Then, inflation is
A) 11 percent between years 2 and 3. B) 11 percent between years 1 and 2. C) 100 percent in year 1. D) 10 percent between years 2 and 3. E) Both answers B and D are correct.