A headline reads "Soccer is the new popular sport among youth." In a competitive market, this situation would lead to a(n):
a. Increase in the price of soccer shoes and decrease in quantity sold
b. Decrease in the price of soccer shoes and increase in quantity sold
c. Increase in the price of soccer shoes and quantity sold
d. Decrease in the price of soccer shoes and quantity sold
Answer: c. Increase in the price of soccer shoes and quantity sold
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Suppose Jack and Kate are at the town fair and are choosing which game to play. The first game has a bag with four marbles in it-1 red marble and 3 blue ones. The player draws one marble from the bag; if it is red, they win $20 and if it is blue, they win $1. The second game has a bag with 10 marbles in it-1 red, 4 blue, and 5 green. The player draws one marble from the bag; if it is red, they win $20; if it is blue, they win $5; and if it is green, they win $1. Both games cost $5 to play. Jack decides to play the first game, and Kate decides to play the second game as described in the scenario. The expected value of the payoff:
A. is higher for Jack than for Kate. B. is lower for Jack than for Kate. C. is the same in both games, because there's only one red marble. D. is higher in the second game because half the marbles entail a payback of at least what she pays to play the game.
Which of the following is not an information characteristic that the GASB identifies as important in government financial reports?
a- Comparability. b- Timelines. c- Reliability. d- Conciseness.
The summary of the flows of goods, services, assets, and currency in and out of a country in a particular year is the ________________________.
Fill in the blank(s) with the appropriate word(s).
Suppose medical care makes up 10 percent of the CPI index, and that prices rise in the medical care area faster than in the rest of the economy. An elderly couple spends 30 percent of their income on medical care. For this couple, the CPI
A. understates the inflation rate because the CPI always understates inflation. B. is a good measure of inflation since the bias inherent in the CPI is offset by the increased emphasis on health care for this family. C. overstates the inflation rate because this family is not typical of the country as a whole. D. understates the inflation rate because of the importance of medical care for this family.