Gunnar can work as a campus security officer at a guaranteed salary of $20,000 per year or as a real estate agent
If Gunnar works as a real estate agent, there is a 50 percent chance that he will earn $10,000 per year and a 50 percent chance that he will earn $30,000 per year. Based on the table above, Gunnar's expected utility if he works as a real estate agent is A) 170.
B) 85.
C) 20.
D) 90.
B
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Tastes for perfect complements are both homothetic and quasilinear.
Answer the following statement true (T) or false (F)
The opportunity cost to a cab driver of taking the day off increases when
A) it rains. B) more cabs enter the business. C) the price of gasoline rises. D) the weather is so pleasant everyone prefers to walk. E) many other cabs are out on the streets.
Under monopolistic competition, a long-run equilibrium exists when price equals:
A. marginal revenue. B. minimum average total cost. C. average total cost. D. marginal cost.
Critics of the policy that allows the private system of health insurance in the United Kingdom focus on what they consider flaws in the model. They are concerned that private insurance:
a. is a waste of money because so few people participate in the private market. b. should not receive taxpayer subsidies. c. premiums are too high and unaffordable for everyone except the wealthy. d. results in higher overall health care spending. e. slows improvements in the National Health Service by taking pressure off the system and results in a two-tiered system.