The cost of repositioning an automobile gas tank for greater safety is $11 per vehicle for 12.5 million vehicles. It is expected that 180 deaths will occur if the gas tank location is not redesigned. If a human life can be valued at $500,000, the expected benefit of redesigning the location of the gas tank is:
A. $900,000,000.
B. $550,000,000.
C. $90,000,000.
D. $5,500,000.
Answer: C
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Between 1973 and 1995, what changes occurred in the labor force and the capital stock that caused a productivity slowdown?
A) The growth of the capital stock and the growth of labor hours increased. B) The growth of the capital stock and the growth of labor hours slowed. C) The growth of the capital increased slowed and the growth of labor hours slowed. D) The growth of the capital stock slowed and the growth of labor hours increased.
AD excess is the amount of additional aggregate demand needed to achieve full employment after allowing for price level changes.
Answer the following statement true (T) or false (F)
Many developing countries face a balance of payments constraint because:
A. they fail to implement exchange rate policy correctly. B. they hold too few international reserves. C. they hold too many international reserves. D. the IMF forces them to adopt policies that are counterproductive.
Suppose an exhaustible resource can be sold only this period or next period. The resource owner is considering selling 100 tons of the resource this period. The future value of the resource when 100 tons are sold this period is less than the present value of the 100 tons sold this period multiplied by one plus the interest rate. What should the resource owner do?
A) She should sell more than 100 tons this period. B) She should sell only 100 tons this period. C) She should sell less than 100 tons this period. D) She should not sell any of the resource in either period.