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. Failure to redesign the gas tank location therefore implies that the automobile company is implicitly valuing human life at:
A. more than $736,889.
B. more than $1,000,000.
C. less than $736,889.
D. exactly $500,000.
Answer: C
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If aggregate planned expenditure is greater than real GDP,
A) a planned decrease in inventories leads to a decrease in production. B) a planned increase in inventories leads to an increase in production. C) an unplanned decrease in inventories leads to an increase in production. D) an unplanned decrease in inventories leads to an increase in the price level. E) an unplanned increase in inventories leads to a decrease in production.
The above figure shows four different markets with changes in either the supply curve or the demand curve. Which graph best illustrates the market for computer manuals after technological advances in making computers occur?
A) Graph A B) Graph B C) Graph C D) Graph D
The oligopolists restrict joint output to Q* and set their price at P*. Which equation is correct?
a. P* > MC
b. P* > MC
c. P* > ATC
d. P* = ATC
Assume the graph shown represents the market for pizzas sold in an hour. If the original equilibrium was D and S1. Which of the following is true when S1 shifted to S2?
A. Equilibrium price increased by $5. B. Equilibrium quantity increased by 20. C. Equilibrium quantity increased by 30. D. Equilibrium price decreased by $5.