A risk-averse individual is offered a gamble that promises a gain of $1000 with probability 0.25 and a loss of $300 with probability 0.75 . Given this situation, he or she will:
a. definitely take the gamble.
b. definitely not take the gamble.
c. definitely take the gamble if his or her income is high enough.
d. take an action that cannot be determined given the information available.
d
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The above figure shows the demand and supply curves in the market for milk. Currently the market is in equilibrium. If the government imposes a $2 per gallon tax to be collected from sellers, estimate the change in p, Q, and social welfare
What will be an ideal response?
Jarrod says that the future value of $250 saved for one year at 6 percent interest is less than the future value of $250 saved for two years at 3 percent interest. Simon says that the present value of a $250 payment to be received in one year when the interest rate is 6 percent is less than the value of a $250 payment to be received in two years when the interest rate is 3 percent
a. Jarrod and Simon are both correct. b. Jarrod and Simon are both incorrect. c. Only Jarrod is correct. d. Only Simon is correct.
If the MRP of the last acre of land hired is lower than the rent, the firm has hired ________.
Fill in the blank(s) with the appropriate word(s).
Which of the following characterizes a competitive agricultural market?
A. The firm has a downward-sloping demand curve. B. Price is determined by market demand and market supply. C. Economic profit is earned in the long run. D. The market has a horizontal demand curve.