Suppose a lottery ticket costs $1 and the probability that a holder will win nothing is 99.9%. What must the jackpot be for this to be a fair bet?
a. 10
b. 100
c. 1,000
d. 10,000
c
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Suppose that Christine owns her own CPA firm. She uses only two inputs in her business: her hours worked (labor) and a computer (capital). In the short run, Christine most likely considers
a. both labor and capital to be fixed. b. both labor and capital to be variable. c. capital to be variable and labor to be fixed. d. labor to be variable and capital to be fixed.
Suppose the company that owns the vending machines on your campus has doubled the price of a can of soda. They then notice that they are selling approximately 15% fewer sodas. The price elasticity of demand for sodas from the campus vending machines, therefore, is:
A. elastic B. inelastic C. unit elastic D. infinite
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
Which of the following is an example of positive externalities?
A. You allow weeds to grow on your yard. B. Your neighbor's barbecue smoke comes through your window. C. Your neighbor always listens to music at an unbearable volume. D. Your neighbor's garden is always well taken care of.