When are outcomes said to be independent? What is meant by the gambler's fallacy?
What will be an ideal response?
Two outcomes are said to be independent when knowing about one outcome does not help you predict the other outcome. The gambler's fallacy occurs when gamblers mistakenly believethat independent events are unlikely to recur. For example, someone who believes that you are unlikely to roll a 2 with two dice (snake eyes) if you just rolled a 2 is guilty of the gambler's fallacy. The two rolls of the dice are independent events; the probability you will roll a 2 this time is 1/36 regardless of what you rolled last time.
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In the circular-flow diagram, which of the following items flows from households to firms through the markets for the factors of production?
a. goods and services b. land, labor, and capital c. dollars spent on goods and services d. wages, rent, and profit
Suppose the accompanying table describes the relationship between price and quantity demanded for a monopolist. QuantityPrice1$102$93$84$75$66$57$48$3If the marginal cost of producing each unit of output is $5, then this monopolist maximizes its profit by charging ________ per unit.
A. $5 B. $6 C. $8 D. $3
Choice variables
A. determine the constraint B. determine the value of the objective function C. can only take on integer values D. cannot be continuous E. both c and d
An appreciation in the U.S. dollar benefits which of the following groups of people?
A. All people living in the United States B. U.S. producers who export farm equipment to other countries C. U.S. consumers who buy imported automobiles D. Foreigners who wish to travel to the United States