Consider the following game. You roll a six-sided die and each time you roll a 1, you get $50. For all other outcomes you pay $10. Since the expected value of this game is $0, the game is called a(n)
A. even game.
B. zero sum game.
C. fair bet.
D. gamble.
Answer: C
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To what phenomenon does "Solow's Paradox" refer?
A) the failure of the Solow growth model to incorporate endogenous growth variables B) the absence of any measured effect of new computer technology on productivity statistics. C) the absence of any long term effect of saving on economic growth rates in the Solow growth model D) the failure of the Solow growth model to predict non-convergence of poor countries
When the Fed reduces the real interest rate, which of the following does NOT increase?
A) consumption B) investment C) government purchases D) net exports
Patent and copyright laws
a. encourage creative activity. b. promote competition among firms. c. discourage creative activity. d. Both a and b are correct.
Which of the following statements is correct for the short run?
a. Output is determined by the amount of capital, labor, and technology; the interest rate adjusts to balance the supply and demand for money; the price level adjusts to balance the supply and demand for loanable funds. b. Output is determined by the amount of capital, labor, and technology; the interest rate adjusts to balance the supply and demand for loanable funds; the price level adjusts to balance the supply and demand for money. c. Output responds to the aggregate demand for goods and services; the interest rate adjusts to balance the supply and demand for money; the price level is relatively slow to adjust. d. Output responds to the aggregate demand for goods and services; the interest rate adjusts to balance the supply and demand for loanable funds; the price level adjusts to balance the supply and demand for money.