You are a hotel manager and you are considering four projects that yield different payoffs, depending upon whether there is an economic boom or a recession. The potential payoffs and corresponding payoffs are summarized in the following table. ProjectBoom (50%)Recession (50%)A$20-$10B-$10$20C$30-$30D$50$50A risk-averse manager will prefer project:
A. A.
B. B.
C. C.
D. D.
Answer: D
Economics
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Refer to Table 10-6. What is Jay's optimal consumption bundle?
A) 1 burger and 2 cans of Pepsi B) 2 burgers and 3 cans of Pepsi C) 3 burgers and 2 cans of Pepsi D) 3 burgers and 1 can of Pepsi
Economics
Assume that coffee and tea are substitutes. When the price of coffee increases
A) the supply of tea increases.
B) the demand for tea decreases.
C) the demand for tea increases.
D) the supply of tea decreases.
Economics
When a nation totally bans trade with another country, it is imposing a(n):
A. tariff. B. embargo. C. quota. D. trade tax.
Economics
What is autarky?
What will be an ideal response?
Economics