A risk-neutral person will invest in a project by examining if
A) the expected utility associated with the project is positive.
B) the marginal utility associated with the project is positive.
C) the expected net present value is positive.
D) All of the above.
C
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If an import quota is imposed on imports of shrimp into the United States, U.S. producer surplus from shrimp will ________ and U.S. total surplus from shrimp will ________
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease E) increase; not change
After Hurricane Katrina destroyed much of the infrastructure of the United States Gulf Coast,
A) labor became more valuable. B) labor became less valuable because of the capital that had been destroyed. C) labor became less valuable because FEMA's response wasn't timely. D) labor became more valuable because of the rebuilding effort.
The term market mechanism refers to
A. Resource allocation based on a production possibilities curve. B. Resource allocation based on consumer needs. C. The use of market prices and sales to signal desired output. D. Government laws and regulations concerning how the market should operate.
Budget surplus is the amount by which the government’s receipts exceed expenditures during a specified period of time, usually a year.
Answer the following statement true (T) or false (F)