You toss two coins and if heads or tails shows up, then I take $1. If only one heads shows up, then you give me $1. We play this game many times. Who comes up ahead at the end of the day?
What will be an ideal response?
No one. Since the probability of 2 heads = probability of 2 tails = probability of only 1 head, our expected payoff is 0.5 (+1) + 0.5 (?1) = 0.
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The table above gives four production possibilities for airplanes and cruise ships. In possibility A, how many resources are devoted to the production of cruise ships?
A) 0 B) few C) most D) all E) It is impossible to tell without more information about the prices of airplanes and cruise ships.
Are checkable deposits really money?
A) No, because they are only commercial bank liabilities, not government liabilities. B) No, because they are ultimately only entries in the balance sheets of commercial banks. C) Yes, because they can be converted on demand into currency or coin. D) Yes, because they can be used to make purchases and pay debts.
Which of the following is an example of a positive statement?
A. Ceteris paribus, a teacher should award a higher grade if you study more hours for an economics test. B. When the price of an item increases, people respond by reducing their consumption of the item. C. The government should balance the budget. D. It is too hot to go jogging.
This table shows the different combinations of goods that Jack can consume, given that his income to spend on these two items is $10.BundleNumber of popsiclesUtility from popsiclesNumber of ice cream conesUtility from ice cream conesA1070000B87201500C66502700D45503750E24004760F005760Considering the information in the table shown, if Jack consumes 2 popsicles and 2 ice cream cones:
A. Jack still has $2 left to spend. B. Jack still has $6 left to spend. C. Jack still has $4 left to spend. D. Jack still has $8 left to spend.