If the price of tea rises relative to all other prices, consumers are likely to
A. buy less coffee.
B. buy more tea.
C. buy less coffee and less tea.
D. buy less tea and more coffee.
Answer: D
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Kyle and Stan are playing Odds or Evens, where Kyle is designated as the "odd" player and Stan is designated as the "even" player. They decide to play the game 10 times. If Kyle adopts a pure strategy of "shoot 2," Stan shoul
A) also adopt a pure strategy of "shoot 2." B) adopt a pure strategy of "shoot 1." C) adopt a mixed strategy of "shoot 1" 50% of the time and "shoot 2" 50% of the time. D) adopt a mixed strategy of "shoot 1" more than 50% of the time and "shoot 2" less than 50% of the time.
Urban Outfitters wants to raise $25 million to finance the construction of a new store, and the company wishes to raise the funds through direct finance. Which of the following methods could it use?
A) It could issue $25 million in stock. B) It could borrow $25 million from a bank. C) It could sell $25 million in bonds. D) It could choose either A or C.
Explain how changes in corporate taxes affect the investment decisions of firms
What will be an ideal response?
The above figure shows Bob's utility function. He currently has $100 of wealth, but there is a 50% chance that it could all be stolen. Bob's expected utility is
A) a. B) b. C) c. D) d.