Refer to the data provided in Table 17.3 below to answer the following question(s). The table shows the relationship between income and utility for Terri.Table 17.3 IncomeTotal Utility $00$20,00010$40,00025$60,00045$80,00075Refer to Table 17.3. Suppose Terri has a 25% chance of becoming disabled in any given year. If she does become disabled, she will earn $0. If Terri does not become disabled, she will earn her usual salary of $80,000. Terri has the opportunity to purchase disability insurance for $20,000 which will pay her her full salary in the event she becomes disabled. Would Terri purchase such a policy?
A. yes
B. no
C. maybe
D. indeterminate from the given information
Answer: B
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If the elasticity of supply is 4, a 10 percent increase in the price of a good leads to a
A) 40 percent increase in the quantity of supply. B) 4 percent decrease in the quantity demanded. C) 2.5 percent increase in the quantity supplied. D) 2.5 percent decrease in the quantity demanded.
Movements along the demand curve are called changes in
a. demand b. opportunity costs c. quantity demanded d. the substitution effect e. preferences
Intellectual property, unlike more tangible assets, can be created without the cost of time or money, and thus the patent and copyright system needlessly creates monopoly ownership of intellectual property that should be provided for free to the public
Indicate whether the statement is true or false
Suppose Canada has a population of 30 million people and a labor force participation rate of 2/3. Furthermore, suppose the natural rate of unemployment in Canada is 7%. If the current number of unemployed people is 1.4 million people, what can we conclude about Canada's economy?
A. The unemployment rate is above the natural rate of unemployment. B. The unemployment rate is below the natural rate of unemployment. C. There is cyclical unemployment present in the economy. D. There is no cyclical unemployment present in the economy.