The underground economy exists for all of the following reasons EXCEPT The
a) avoidance of government regulation
b) production of illegal goods
c) desire to maintain accurate records of economic transactions
d) avoidance of taxes
Ans: c) desire to maintain accurate records of economic transactions
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Daniel enjoys both soda and pizza, allocating his purchases across these two goods so that his utility is maximized. If Daniel receives one-third as much utility from the last can of soda as from the last slice of pizza, we can say that:
a. the price of pizza is one-third that of soda. b. the price of pizza is equal to that of soda c. the price of pizza is twice that of soda. d. the price of pizza is three times that of soda.
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. If Jack only cares about expected value, and not risk, he should decide to play a game if:
A. the expected value of the payoff is higher than the expected value of the payoff in the other game. B. the expected value of the payoff is lower than the price to play the game. C. the expected value of the payoff is higher than the price to play the game. D. the expected value of the payoff is double the price to play the game.
Which of the following explains why managers of government agencies have little incentive to achieve operational efficiency?
What will be an ideal response?
The Condorcet paradox can arise with:
A. first-past-the-post voting. B. run-off elections. C. approval voting. D. pair-wise majority voting.