Consider the above table. Assuming the government imposes a price floor on garbanzo beans of $8, what would be the likely result?
A) a surplus of 2000 garbanzo beans
B) a shortage of 2000 garbanzo beans
C) No change, equilibrium would prevail.
D) The quantity demanded of garbanzo beans would fall to zero.
A
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The assumption that people do not intentionally make decisions that would leave them worse off is known as
A) the rationality assumption. B) the microeconomic assumption. C) the ceteris paribus assumption. D) the normative assumption.
Suppose Brandon's indifference curves are defined as U = (3/4)?FS + (1/4)?FH, where FS is consumption during sunny weather and FH is consumption during a hurricane. Further suppose Brandon receives 64 units of food when it is sunny and 16 units when there is a hurricane. What is the certainty equivalent of the expected food consumption bundle if the probability of sunshine is ? = 0.75?
A. 49 units of food B. 52 units of food C. 7 units of food D. 25 units of food
Which of the following statements regarding the quality of managed care is accurate?
a. Managed care focuses on the ability to pay. b. Empirical evidence suggests that managed care fails to reduce health care spending. c. Empirical studies show little evidence that managed care quality was lower than that found in fee-for-service plans. d. Most of managed care's savings do not affect hospitalization.
Refer to the graph. Suppose a particular financial asset's risk and return profile puts it at point E. The process of arbitrage will:
A. move the financial asset to point G on the Security Market Line.
B. move the financial asset to point D.
C. move the financial asset to point F.
D. not change the financial asset's position on the Security Market Line.