Although he is very poor, Al plays the million-dollar lottery every day because he is certain that one day he will win. Al makes this calculation based upon
A) the frequency of past outcomes.
B) subjective probability.
C) knowledge of all possible outcomes.
D) tossing a coin.
B
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The tables above show the marginal costs and benefits from production of paper. If the market is perfectly competitive and unregulated, the efficient amount of paper will be produced by setting a Pigovian tax of
A) $5 per ton. B) $10 per ton. C) $20 per ton. D) $40 per ton.
A key to analyzing subgame perfect equilibrium strategy in sequential games is
a. predictable behavior b. an explicit order of play for at least some participants c. information sets that are known with certainty d. credible threats clearly communicated e. randomness
Which of the following is often used by economists to assess income distribution?
a. Affordability Index b. Quintiles c. Consumer Price Index d. Quartiles
It is common knowledge that many U.S. national parks have become overused. One possible solution to this problem is to
a. increase entrance fees. b. decrease camping permit fees. c. require all visitors to register upon entering the park. d. sell the land that the parks currently occupy.