A perfectly competitive firm has a random demand with a 90 percent chance of being $100, a 5 percent chance of $90, and a 5 percent chance of being $80. What is the firm's expected marginal revenue?
A) $96.40 B) $98.50 C) $92.75 D) $90.50
B) $98.50
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If the GDP deflator is 142, by how much have prices changed since the base year?
A) Prices have increased by 42%. B) Prices have increased by 142%. C) Prices have increased by 58%. D) Prices have decreased by 4.2%.
OPEC is an example of a:
A. monopsony. B. monopoly. C. duopoly. D. cartel.
The Condorcet voting paradox applies to situations in which voters
a. decide between exactly two possible outcomes. b. decide among more than two possible outcomes. c. as a group have transitive preferences. d. choose the inferior candidate even though the majority preferred the better candidate.
Choose the letter below that best represents the type of shift that would occur in the following situation in the United States: When the economy overheated, the U.S. government cooled it down with higher taxes, spending reductions, and less money. (See Figure 8.6.)
A. A. B. B. C. C. D. D.