On any given day we know a salesman can earn $0 with a 40% probability, $100 with a 20% probability or $300 with 40% probability. His expected earnings equal
A) $0.
B) $140.
C) $300.
D) It cannot be determined from the available information.
B
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An economy's ________ during a recession
A) labor supply curve shifts to the right B) labor demand curve shifts to the right C) labor supply curve shifts to the left D) labor demand curve shifts to the left
The reason that it is possible for the economy in the above figure to be at E2 rather than at E1 is that
A) in the long run there is always less than full employment. B) in the short run the economy can produce more than it can in a long-run full-adjustment situation. C) AD always shifts outward and never shifts inward. D) the economy must be in a recession.
If the price of a good is 0, a consumer will
a. consume all units that have positive total utility b. consume an infinite quantity c. consume all units with positive marginal utility d. consume the entire amount supplied e. consume until total utility becomes 0
In labor markets, risk taking accounts for some income differences
a. True b. False Indicate whether the statement is true or false