A movie producer has to decide to fund a new movie project. For this project, a success would earn $20 million and a failure would cost $60 million in lost profits. At what probability of expected success should he fund the movie?
a. 0.20
b. 0.25
c. 0.50
d. 0.75
d
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Which of the following statements is not true?
A. Taxes often create inefficiency but can increase equity. B. Tax policy is often a balance between equity and efficiency. C. Some taxes lead to greater efficiency. D. Taxes are about efficiency not equity.
What is meant by comparative statics? Explain with an example
What will be an ideal response?
Figure 4-25
Refer to . Consumer surplus before the tax was levied is represented by area
a.
A.
b.
A + B + C.
c.
D + E + F.
d.
F.
Use the list of items below to answer the question that follows.1.Money market mutual funds held by individuals 2.Savings deposits, including money market deposit accounts 3.Currency held by banks 4.Currency held by the public 5.Shares of corporate stock 6.Small time deposits 7.Checkable deposits 8.Large time deposits Refer to the above table. The M1 money supply is composed of items:
A. 3, 4 and 7. B. 2 and 7. C. 3 and 4. D. 4 and 7.