Consider the following game. You pick a card from a deck and each time you select an ace, you get $260. For all other cards you must pay $13. What is the expected value of the game?
A. -$12
B. $0
C. $8
D. $32
Answer: C
You might also like to view...
If you save more because Social Security motivates you to provide a greater level of inheritance for your children, then this is referred to by economists as the
A. slovenly effect. B. bequest effect. C. asset substitution effect. D. induced retirement effect.
In the United States, as measured by real GDP per person, average income is about how many times as high as average income a century ago?
a. 2 b. 4 c. 6 d. 8
If everyone has a dominant strategy, there can be no mixed strategy equilibrium.
Answer the following statement true (T) or false (F)
A market failure associated with Keynesian economics is
A) pollution externalities. B) economic agents cannot agree on prices and wages that are socially efficient. C) insurance is imperfect. D) banking panics.