Frank is considering moving to Denver. There is a 70 percent chance that he will find a job that pays $1,000 more than what he currently earns and a 30 percent chance he will find one that pays $3,000 less. The expected value of moving to Denver is:
A. $200.
B. -$200.
C. $700.
D. $900.
Answer: B
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An increase in human capital will tend to cause which of the following?
A) increase labor productivity B) increase the standard of living C) increase economic growth D) all of the above
In the above table, saving is positive when real disposable income is greater than
A) $300. B) $100. C) zero. D) $500.
Compared to the United States, health care spending per person in other high-income countries has been
A) declining at approximately the same rate. B) growing at a slower rate. C) growing at a faster rate. D) growing at approximately the same rate.
Federal funds are
A) funds owned by the federal government. B) funds owned by the Federal Reserve. C) bank reserves that are lent overnight between banks. D) bank reserves that are lent overnight by the Federal Reserve to banks.