If the risk associated with a particular outcome is ________, or the value of a particular outcome is ________, then cost-benefit analysis might lead people to accept too little risk
A) overestimated, overestimated
B) overestimated; underestimated
C) underestimated; overestimated
D) underestimated; underestimated
B
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Which of the following would be studied by macroeconomists?
A. Inflation in developing countries. B. The effect of government subsidies on sugar prices. C. The impact of the minimum wage on families below the poverty level. D. The effect of rent controls on housing prices in New York City.
Economic profit of a decision in question equals
a. accounting profit of the decision in question + its opportunity cost. b. accounting profit of the decision in question ? accounting profit of the best available alternative. c. accounting profit of the decision in question + its opportunity cost + overheads. d. its opportunity cost + accounting profit of the best available alternative.
Constant returns to scale is the point on a production function where increasing inputs will no longer increase output
a. True b. False Indicate whether the statement is true or false
Recessions are always caused by negative demand shifts.
Answer the following statement true (T) or false (F)