Consider a consumer who is searching for the lowest price for good X. The consumer knows that 75 percent of the time she will find a store charging $10 and 25 percent of the times she will find a store charging $7. The expected benefit from an additional search is:
A. $0.
B. $2.25.
C. $3.
D. $0.75.
Answer: D
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Everything else held constant, if a central bank makes an unsterilized ________ of foreign assets, then the domestic money supply will ________ and the domestic currency will depreciate
A) purchase; increase B) purchase; decrease C) sale; increase D) sale; decrease
The poverty line is the income level
a. earned by a worker employed full-time at the minimum wage. b. below which a family is officially considered "poor." c. above which a family is not entitled to government assistance. d. that is the average for American families.
The demand for factors of production is referred to as:
A. production demand. B. derived demand. C. primary demand. D. implied demand.
In general, the accounting of trade in goods and capital is known as the:
A. trade surplus. B. balance of trade. C. net capital outflow. D. balance of payments.