Expected utility is
A) the maximum utility that a person can get from a set of possible outcomes.
B) the probability-weighted mean of the utility gained from a set of possible outcomes.
C) negative for risk-averse people.
D) indeterminant for risk preferring people.
B
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Dumping occurs when a firm
A) sells too much of a good in a foreign country. B) sells in a foreign country at prices that are below fair value. C) sells in its home market at prices that are below the average price charged by its competitors. D) sells in a foreign market at prices that are below the prices charged by firms based in the foreign market. E) charges more than a fair price.
The target rate of inflation for the European Central Bank (ECB) is:
(a) Above 2%. (b) Below, but close to, 2%. (c) 0%. (d) None of the above, because the ECB targets a rate of deflation.
Major macroeconomic issues include differences across countries in all of the following EXCEPT:
A. economic growth rates. B. inflation rates. C. infant mortality rates. D. unemployment rates.
Which of the following statements is false?
A. The short run refers to a period of less than one year B. In the long run, all inputs can vary C. Firms may continue operating at a loss in the short run D. In the long run, firms would not continue operating at a loss