Refer to the scenario above. If the rules of the gamble are changed such that in the case of heads, the individual wins $50, and in the case of tails, the individual loses $100, the expected value of the gamble changes to:
A) $25.
B) -$25.
C) $50.
D) -$50.
B
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The most commonly traded product (by value) in recent years has been
A) petroluem. B) wheat. C) televisions, stereos, and VCRs. D) automobiles.
The velocity of money in circulation measures: a. the average length of time that people hold wealth
b. how fast aggregate spending will increase for a given decline in money demand. c. how fast inflation will rise for a given increase in the money supply. d. how quickly money changes hands. e. how quickly banks can create money.
The production possibilities curve depicts the various combinations of two goods that can be:
a. interchanged among two countries. b. produced with a given technology. c. consumed with a given quantity of resources. d. produced with increments in resources and changes in technology. e. consumed as the resources increase.
What are two traits that make demand deposits more attractive than physical currency for large transactions?
a. lower transaction costs and increased safety of transactions b. higher interest rates and lower accounting costs c. greater monetary value and lower risks d. increased purchasing power and lower bartering costs