Refer to Scenario 11.1. Suppose all five ranchers know that their land that Mariana needs is worth a total of $2 million. If each rancher agrees to sell his or her parcel of land to Mariana for $600,000, Mariana will purchase
A) all five parcels of land and the railway will be built.
B) all five parcels of land but the railway will not be built.
C) only four parcels of land and the railway will be built.
D) no parcels of land and the railway will not be built.
A
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Steve owns a motorcycle valued at $5,000 and that is his only asset. There is a 5 percent chance that Steve will have an accident within a year. If he does have an accident, his motorcycle is worthless
Steve's utility of wealth curve is shown in the figure above. An insurance company agrees to pay Steve the full value of his motorcycle in case of an accident if he buys the company's insurance policy. The company's operating expenses are $500 per policy. What is the minimum premium that the insurance company will accept? A) $1,000 B) $2,000 C) $500 D) $1,500
Abstract economic theory can be used by academicians but not by politicians or business people.
Answer the following statement true (T) or false (F)
Which of the following parties is most likely to benefit when the exchange rate changes from $1 = 19 Mexican pesos to $1 = 25 Mexican pesos?
a. Mexico residents buying U.S. investments b. Mexican tourists visiting the United States c. U.S. firms exporting goods to Mexico d. U.S. residents buying Mexican-made goods
According to Okun's Law, how does a 2 percent increase in unemployment affect the economy?
What will be an ideal response?