One way to place a value on human life is to examine the risks that people voluntarily take and how much they must be paid for taking them. What is the approximate value of a human life according to studies that use this approach?
According to these studies, the value of a human life is about $10 million. (This is the number cited by Mankiw. The "correctness" of an answer, of course, is determined by instructor discretion.)
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Which of the following is NOT a reason Mexico and Canada wanted a free trade agreement with the United States?
A) Mexico wanted increased direct foreign investment. B) Canada wanted to guarantee access to the U.S. market. C) Mexico wanted the United States to lower its high barriers to Mexican products. D) Canada wanted its firms to become more globally competitive. E) Mexico wanted to institutionalize its economic reforms.
According to the classical economists, if the amounts of money people are planning to invest is greater than the amount that people want to save,
A. interest rates will rise and savings will rise. B. interest rates will fall and savings will fall. C. interest rates will fall and savings will rise. D. interest rates will rise and savings will fall.
There is a futures contract for the purchase of 100 bushels of wheat at $2.50 per bushel. At the end of the day when the market price of wheat increases to $3.00 per bushel:
A. the seller (short position) needs to transfer $50 to the buyer (long position). B. the buyer (long position) needs to transfer $50 to the seller (short position). C. nothing happens since with a futures contract all payments are made at the settlement date. D. nothing happens since marked to market adjustments only take place when the market price falls below the contract price.
An example of a good that is rival in consumption is:
A. a radio program. B. a copy of an economics textbook. C. an economics web page. D. a lighthouse.