Define expected value
What will be an ideal response?
The sum of the payoffs associated with each possible outcome of a situation weighted by its probability of occurring.
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Farming in poor countries is considered to be:
A. capital intensive. B. labor intensive. C. production intensive. D. cost intensive.
Marginal cost is calculated by dividing the change in total cost by the change in total output
a. True b. False Indicate whether the statement is true or false
Suppose Dave drives more recklessly when he has car insurance than when he does not have car insurance. This is an example of the moral hazard problem associated with insurance
a. True b. False Indicate whether the statement is true or false
Two basic determinants of investment spending are
A. expected returns and real interest rates. B. domestic trade and international trade. C. general price level and the level of output. D. consumer spending and government spending.