Over 20% of high school dropouts are under the poverty line. Indicate whether the statement is true or false ANSWER T
Date: September 9th, 2020
A firm’s producer surplus equals its economic profit when A) average variable costs are minimized. B) average fixed costs are minimized. C) marginal costs equal marginal revenue. D) fixed costs are zero. E) total revenues equal total variable costs. ANSWER D
Date: September 9th, 2020
A $130,000 investment in new equipment this year will increase your firm’s profits by $50,000 in each of the next 3 years. What is the net present value of this investment if your firm’s opportunity cost of capital is 10 percent? A) -5,657 B) 5,657 C) 124,343 D) 128,850 ANSWER A
Date: September 9th, 2020
Which of the following situations is likely to generate noncooperative behavior in repeated games? A) The game is repeated a finite number of times. B) There are many players in the game. C) The payoffs can change rapidly from one game period to the next. D) All of these situations can generate noncooperative behavior. […]
Date: September 9th, 2020
African countries contain a third of the world’s population and over half of the world’s extreme poverty. Indicate whether the statement is true or false ANSWER F
Date: September 9th, 2020
Refer to Scenario 17.4. If the flood control system were in place, the firm could insure against a flood for an annual premium of A) $5,000. B) $10,000. C) $100,000. D) $200,000. E) $1,000,000. ANSWER A
Date: September 9th, 2020
Refer to Scenario 17.4. If the flood control system were not in place, the insurer would not be willing to insure against the flood for any premium less than A) $5,000. B) $10,000. C) $100,000. D) $200,000. E) $1,000,000. ANSWER B
Date: September 9th, 2020
Producer surplus in a perfectly competitive industry is A) the difference between profit at the profit-maximizing output and profit at the profit-minimizing output. B) the difference between revenue and total cost. C) the difference between revenue and variable cost. D) the difference between revenue and fixed cost. E) the same thing as revenue. ANSWER […]
Date: September 9th, 2020
Suppose that a tax of $2 per unit of output is imposed on red rubber ball producers. What level of output maximizes profit? A) -1 B) 3 C) 4.5 D) 5 E) B, C, and D are correct. ANSWER D
Date: September 9th, 2020
Refer to Scenario 17.4. If there is no flood insurance and no flood control system is in place, the expected loss from a flood is A) $5,000. B) $10,000. C) $100,000. D) $200,000. E) $1,000,000. ANSWER B
Date: September 9th, 2020
