Faced with an uncertain situation, the best decision for a person obeying the von-Neumann Morgenstern axioms:
a. minimizes loss relative to the status quo
b. minimizes variability across possible outcomes.
c. maximizes the expected payoff.
d. maximizes expected utility.
d
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When a German company purchases a U.S. company for $20 million, in the balance of payments the value of that transaction is recorded in the
A) current account. B) investment account. C) official purchases account. D) capital and financial account. E) purchase account.
Table 21.2Output (units per day)0102030Total cost (dollars per day)$40$54$62$80At 30 units of output in Table 21.2, the total variable cost is
A. $40. B. $80. C. $50. D. $30.
Barb's Soccer Ball Company produces 800 soccer balls per week. If the firm used marginal cost pricing to determine soccer ball output, it would produce 600 soccer balls. Consumers do not receive the most desirable quantity of soccer balls from Bib's because
A. Economic losses are occurring. B. The firm must be earning higher than normal economic profits. C. The cost of producing the additional 200 soccer balls is less than the amount that consumers are willing to pay for the additional soccer balls. D. The cost of producing the additional 200 soccer balls is greater than the amount that consumers are willing to pay for the additional soccer balls.
Which of the following is TRUE about the political and market systems of voting?
A) The political voting system functions according to proportional rule, while the market voting system functions according to majority rule. B) The political voting system functions according to majority rule, while the market voting system functions according to proportional rule. C) The political voting system functions according to minority rule, while the market voting system functions according to majority rule. D) The political system and the market system are identical.