Three possibilities have probabilities 0.5, 0.4 and 0.1 and values $10, $20, and $30 respectively. The expected value is:
a. $15
b. $16
c. $17
d. $18
b
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To have an effect on the market price, price ceilings must be set above the equilibrium price. ?
Answer the following statement true (T) or false (F)
Suppose the production of a good results in positive externalities. If output occurs at the intersection of the supply curve and the marginal social benefits curve, then
A. the socially optimal level of output will be produced. B. society will incur a net social cost. C. society will want less produced, and producers will be willing to satisfy that desire. D. there is market failure.
A consumer's budget line shows
a. the utility that an individual would receive from consuming various combinations of two goods b. the combinations of two goods that an individual is able to purchase, given prices and income c. how income is influenced by prices of goods d. how changes in income affect utility e. the relationship between prices and income
Which of the following about economic growth is true?
a. The fastest growing economies in the world are mostly less developed countries. b. The fastest growing economies in the world (those with annual real growth rates of 3.5 percent or more) are mostly high-income industrial countries. c. The slowest growing countries in the world, many of which are experiencing declines in per capita GDP, are less developed countries. d. Both a and c are true.