John is trying to decide whether to expand his business or not. If he continues his business as it is, with no expansion, there is a 50 percent chance he will earn $100,000 and a 50 percent chance he will earn $300,000. If he does expand, there is a 30 percent chance he will earn $100,000, a 30 percent chance he will earn $300,000 and a 40 percent chance he will earn $500,000. It will cost him $150,000 to expand. The expected value of John's earnings if he chooses not to expand is:
A. $250,000.
B. $200,000.
C. $400,000.
D. $225,000.
Answer: B
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What will be an ideal response?
If Andrea sells Dan a Wii gaming system for $150,
a. the well-being of both parties will be unchanged. b. Andrea will gain from the transaction, but Dan will lose. c. Dan will gain from the transaction, but Andrea will lose. d. both Dan and Andrea will gain from this transaction.
(1)(2)(3)(4)(5)QdQdPriceQsQs5040$1070806050960708060850609070740501008063040Refer to the above table. If demand is represented by columns (3) and (1) and supply is represented by columns (3) and (4), equilibrium price and quantity will be:
A. $7 and 30 units. B. $9 and 60 units. C. $10 and 60 units. D. $8 and 80 units.
A household is hurt on the ________ side when its net profits or wages fall, and it is hurt on the ________ side when the prices of goods and services increase.
A. uses; sources B. flow; stock C. input; output D. sources; uses