What is the expected payoff of an investment that yields $5,000 with a probability of 0.15 and $500 with a probability of 0.85?
A. $325
B. $5,500
C. $1,175
D. $2,750
C. $1,175
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________ is defined as a market outcome in which the marginal benefit to consumers of the last unit produced is equal to the marginal cost of production, and in which the sum of consumer surplus and producer surplus is at a maximum
A) Economic efficiency B) Consumer efficiency C) Deadweight efficiency D) Producer efficiency
A person has a comparative advantage in an activity whenever she
A. can perform the activity at a lower opportunity cost than another person can. B. can do the activity in less time than anyone else. C. has an absolute advantage in the activity. D. can do everything better than anyone else.
If the absolute value of the price elasticity of demand for a product is less than 1, then
A. demand is inelastic. B. quantity demanded is very sensitive to price changes. C. demand is elastic. D. demand is unit-elastic.
The Council of Economic Advisers
a. was created in 1776 and consists of three members and a staff of several dozen economists. b. was created in 1776 and consists of thirty members and a staff of a dozen economists. c. was created in 1946 and consists of three members and a staff of several dozen economists. d. was created in 1946 and consists of thirty members and a staff of a dozen economists.