One way people cope with uncertainty about the future is they:
A. avoid risks when it is reasonable to do so.
B. only select risky alternatives if the expected value is twice as high as for a safe alternative.
C. buy insurance.
D. All of these are ways individuals cope with uncertainty.
Answer: C
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Which of the following questions is of most interest for MACROECONOMISTS?
A) Why is there inflation? B) Why does the steel industry want tariffs? C) What is the appropriate stance of antitrust policy? D) Why do foreigners immigrate to the United States?
Absolute advantage
a. is the same as comparative advantage b. implies autarky c. means that countries of the same size have the same opportunity cost of producing both goods d. means that a country can produce more of two goods than another country can e. means that a country can produce less of two goods than another country can
One of the important points of criticism of industrial policy is that: a. it can lead to stiff competition among the domestic firms in an economy. b. small domestic firms will not be able to survive economic clustering
c. government sponsored research will end up benefitting foreign countries. d. it can prohibit regional innovations. e. the knowhow in one firm will not spill over to other firms in an economy.
Which of the following is most likely to be true of economic and accounting profits?
a. Economic profits are less than accounting profits. b. Accounting profits are less than economic profits. c. Economic profits plus accounting profits equal zero. d. Accounting profits minus economic profits equal zero.