Imagine that there are two countries, Home and Far Far Away, and that residents of each own only one asset, domestic land yielding an annual harvest of mangoes. Assume that the yield on the land is uncertain
Half the time, Home's land yields a harvest of 5,000 tons of mangoes at the same time as Far Far Away's land yields a harvest of 2,500 tons. The other half of the time the outcomes are reversed. The average for each country mango harvest is A) 2500.
B) 2750.
C) 3500.
D) 3750.
E) 3000.
D
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Which of the following is NOT part of the FOMC directive?
A) It lays out the FOMC's general economic objectives. B) It specifies target ranges for money supply growth. C) It establishes short-term federal funds rate objectives. D) It specifies who the chair of the Fed is.
What might cause a decrease in current supply of a product?
A. A decrease in the price of one of the inputs used to make the product B. An increase in the product's own price C. New information that leads sellers to believe that the product's price will fall in the future D. New information that leads sellers to believe that the product's price will rise in the future
Which of the following would affect both short-run and long-run aggregate supply?
a. a supply shock b. menu costs c. money illusion d. technological change e. a change in the general price level
In the short run, a purely competitive seller will shut down if product price:
A. equals average revenue. B. is greater than MC. C. is less than AVC. D. is less than ATC.