A risk neutral individual
a. Values a lottery at more than its expected value
b. Values a lottery at less than its expected value
c. Values a lottery at its expected level
d. Tends to play a lot of lotteries
c
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If total output is calculated by adding up the market value of goods and services produced, then more expensive items:
A. receive a greater weight than cheaper items. B. receive the same weight as cheaper items. C. receive a smaller weight than cheaper items. D. are double counted.
If a quota is imposed on imports of shrimp into the United States, U.S. consumers ________ and U.S. producers ________
A) gain; gain B) lose; gain C) gain; are unaffected D) lose; lose E) gain; lose
There is a double coincidence of wants when
A) person 1 has what person 2 wants, who in turn wants what person 3 has. B) person 1 has what person 2 wants, and person 2 has money. C) person 1 has what person 2 wants, and person 2 has what person 1 wants. D) person 1 has money, and person 2 has what person 1 wants.
Economists believe that entrepreneurs, whether they can articulate their behavior or not, always think about ________, which explains their MC = MR profit-maximizing activity
a. minimizing ATC b. maximizing revenue c. the consequences of producing the next unit d. maximizing output e. doing better than breaking even