Expected value represents
A) the actual payment one expects to receive.
B) the average of all payments one would receive if one undertook the risky event many times.
C) the payment one receives if he or she makes the correct decision.
D) the payment that is most likely to occur.
B
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Property rights specified in a contract are always open-ended and they exhaustively specify the owner's alternatives
Indicate whether the statement is true or false
According to classical economists
A. Demand stimulus is needed to produce full employment. B. Unemployment will not be a serious problem in a market economy. C. Say's law is not valid. D. Wage levels are always "sticky."
If the firm has already reached the minimum efficient scale, then:
A. any additional output will not result in a lower long run average cost. B. any additional output will result in a lower long run average cost. C. additional output will result in a lower long run marginal cost. D. the firm is profit maximizing in the long run.
If we include cash benefits and in-kind benefits available to low-income people, the share of the U.S. population in poverty
A) drops dramatically. B) increases somewhat. C) increases dramatically. D) does not change.