If a large increase in the wage rate leads to a net increase in the use of capital by a firm, then
A. the substitution effect outweighed the output effect.
B. the output effect outweighed the substitution effect.
C. the substitution and output effects are equal.
D. there is no way to estimate the relative size of the substitution and output effect.
A. the substitution effect outweighed the output effect.
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If an individual makes her investment decisions based solely on the Expected Value criterion, one can conclude that she is
A) risk averse. B) risk neutral. C) risk loving. D) extremely wealthy.
The cumulative probability distribution shows the probability
A) that a random variable is less than or equal to a particular value. B) of two or more events occurring at once. C) of all possible events occurring. D) that a random variable takes on a particular value given that another event has happened.
Elasticity of demand equals the ratio of the percentage change in the price of a good to the percentage change in the quantity demanded
a. True b. False Indicate whether the statement is true or false
A(n) ______ statement is a subjective, contestable statement that attempts to describe what should be done.
a. objective b. positive c. normative d. negative