This chapter talked about the idea of independent events
a. Suppose you draw a card from a standard deck of cards, put that card back in the deck, and draw a second card. Are the events "Draw a diamond the first time" and "Draw a diamond the second time" independent events?
b. Suppose you draw a card from a standard deck of cards, you do notput that card back in the deck, and draw a second card. Are the events "Draw a diamond the first time" and "Draw a diamond the second time" independent events?
a. These events are independent. When you put the first card back in the deck you are repeating the first draw. A deck of cards is like a roulette wheel – it does not have a memory – and so the probability you will draw a diamond the second time is the same whether or not you drew a diamond the first time. There are 13 diamonds in a deck of 52 cards and so the probability of drawing a diamond either the first or second time is 13/52 = 25%.
b. These events are not independent. If you draw a diamond the first time then there are 51 cards left including 12 diamonds. Therefore, the probability of drawing a diamond the second time is 12/51 which is about 23.5%. If you do not draw a diamond the first time then there are 51 cards left including 13 diamonds. The probability of drawing a diamond the second time in this case is 13/51 which is about 25.5%.
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Use the following diagram to answer the next question. 
The diagram illustrates the pattern of
A. wage movements over time. B. business cycles. C. price level movements. D. economic growth patterns.
Which of the following is a depository institution?
a. An insurance company b. A credit union c. A finance company d. A pension fund e. A stock market
In short-run equilibrium in a perfectly competitive market,
a. each firm earns an economic profit b. each firm earns a normal profit c. firms shut down if price exceeds average total cost d. each firm takes consumers' marginal utility as given e. peach firm takes the market price as given
According to most economists, the development of markets is:
A. both a necessary and a sufficient condition for development. B. a sufficient condition for development but not a necessary condition. C. a necessary condition for development but not a sufficient condition. D. neither a necessary nor a sufficient condition for development.