Assume the graph shown shows Bobbi's budget constraint. If hairbands cost $5, then Bobbi's income to spend on these two items must be:
A. $8.
B. $6.
C. $40.
D. Cannot be determined without more information.
C. $40.
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The concept of depreciation while widely employed, has little economic basis
a. True b. False
Based on the above information, what is Willy's "expected loss" due to an accident?
Willy Wonka wants to avoid any accidents of the work floor of his chocolate factory. If an accident does occur, it would cost Willy $500,000 in damages. Also, the probability of an accident is 20%. Pr(Accident)=0.2Pr(Accident)=0.2 A. $20,000 B. $50,000 C. $100,000 D. $125,000
The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
If the real GDP of a DVC increases from $600 billion to $630 billion and its population increases from 200 million to 216 million, its real per capita GDP will have:
A. increased by about $83. B. decreased by about $83. C. remained unchanged. D. decreased by about $19.