Suppose a lottery ticket costs $1 and the probability that a holder will win nothing is 99%. What must the jackpot be for this to be a fair bet?
a. 10
b. 100
c. 1,000
d. 10,000
b
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The big tradeoff is a tradeoff between
A) efficiency and fairness. B) consumer surplus and producer surplus. C) taxes and subsidies. D) price ceilings and price floors.
If the bidders at a first-price auction have true values of $8, $7, $6, and $5, the item will sell for
a. $8 b. $7 c. just over $7 d. just under $7
Answer the next question based on the following consolidated balance sheet for the commercial banking system. Assume the required reserve ratio is 30 percent. All figures are in millions of dollars.AssetsLiabilities & Net WorthReserves$200 Checkable Deposits$600Loans100 Stock Shares700Securities500 Property500?Refer to the above data. The commercial banking system can expand the supply of money by a maximum of:
A. $36.5 million. B. $51.9 million. C. $66.67 million. D. $23.5 million.
Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher