According to the law of large numbers, when a gamble is repeated many times,
a. the average outcome increases.
b. the average outcome is the expected value.
c. the probability of each outcome changes.
d. insurance becomes less profitable when many people buy it.
b. the average outcome is the expected value.
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An increase in the aggregate expenditures schedule ________.
A. decreases aggregate demand by the amount of the increase in aggregate expenditures B. increases aggregate demand by the amount of the initial increase in aggregate expenditures times the multiplier C. decreases aggregate demand by the amount of the initial increase in aggregate expenditures times the multiplier D. increases aggregate demand by the amount of the increase in aggregate expenditures only
Other things equal, if the government increased the quantity of pollution rights to be sold,
a. pollution would not be affected b. the price of pollution rights would rise, and the amount of pollution would decrease c. the price of pollution rights would fall, and the amount of pollution would decrease d. the price of pollution rights would fall, and the amount of pollution would increase e. the price of pollution rights would rise, and the amount of pollution would increase
According to the graph shown, if this economy were to open to trade, the amount consumed domestically would:
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. increase by 35.
B. increase by 90.
C. decrease by 35.
D. decrease by 90.
Suppose the price of a product is less than its average variable cost. When the firm's fixed obligations are completely ended, it will now most likely:
A. make an economic profit. B. go out of business. C. expand to a bigger operation. D. break even.