Suppose Hillary was offered the following choice: Option 1 is to win $10 for sure and Option 2 is to win $20,000 with odds of 1 in 2,000 and otherwise to win nothing. If Hillary is risk averse she
A. will choose Option 1.
B. will choose Option 2.
C. is indifferent between the two.
D. will choose Option 1 or Option 2 with equal probability.
A. will choose Option 1.
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Which of the following statements is true?
A) There always exists some amount of unemployment in an economy. B) The unemployment in an economy normally increases at times of expansion and decreases at times of contraction. C) In almost every economy, each job opening is instantly filled by a qualified worker. D) The unemployment rate in an economy is constant over the long run.
What are the two characteristics that are essential to economic analysis of invention?
a. fixed-costs and public goods b. fixed-costs and private goods c. variable-costs and public goods d. variable-costs and private goods
The ________ is a measure of the price level and is calculated by dividing ________ by ________ and multiplying by 100
A) CPI; real GDP; nominal GDP B) GDP deflator; real GDP; nominal GDP C) GDP deflator; nominal GDP; real GDP D) PPI; nominal GDP; real GDP E) PPI; real GDP; nominal GDP
Refer to the information provided in Figure 3.18 below to answer the question(s) that follow.
Figure 3.18Refer to Figure 3.18 The market is initially in equilibrium at Point B. If demand shifts from D2 to D1 and the price of burritos remains constant at $4.00, there will be
A. an excess supply of 100 million pounds of burritos. B. an excess demand of 200 million pounds of burritos. C. an excess supply of 200 million pounds of burritos. D. an excess demand of 100 million pounds of burritos.