If a manager adopted both project A and project B simultaneously, the expected value of this joint project would be:ProjectBoom (25%)Recession (75%)A$30-$15B-$15$20
A. $7.50.
B. $11.25.
C. $0.
D. ?$3.75.
Answer: A
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Which central coordination task has claimed the most attention of central planners?
a. Output selection b. Production planning c. Distribution d. Rationing
When looking at data for unemployment and inflation in the 1950s and 1960s there is evidence supporting the short run Phillips Curve model.
Answer the following statement true (T) or false (F)
If a natural disaster were to cause a negative long-run supply shock to the economy, once the economy adjusts, the new equilibrium will be at a:
A. higher price level and lower level of output. B. lower price level and lower level of output. C. higher price level and higher level of output. D. lower price level and higher level of output.
A uniform tax according to the physical quantities of pollution may not be the appropriate way to correct for an externality because
A) it places a unfair burden on small producers. B) a uniform tax can only account for social costs and not external costs. C) a firm will reduce production. D) it may not adequately account for economic damages.