Expected value represents the average of all outcomes if one were to undertake the risky event many times over and over again. What will be an ideal response? ANSWER True. The expected value is not expected on any one outcome, because it represents the average of many outcomes.
Date: September 9th, 2020
_____ is the exchange of political support on one issue for political support on another issue. a. Logrolling b. Market exchange c. Agenda control d. Rent seeking ANSWER a
Date: September 9th, 2020
The game rock-paper-scissors has A) a mixed strategy equilibrium. B) a dominant strategy equilibrium. C) no equilibrium. D) a pure strategy equilibrium. ANSWER A
Date: September 9th, 2020
Your friend Diana tells you that she thinks that her favorite softball team has a 70% chance of winning the next game because that is exactly the winning rate of her team in the last two seasons. This is an example of a(n) A) objective probability. B) subjective probability. C) risk-averse statement. D) Friedman-Savage preference. […]
Date: September 9th, 2020
The dollar value of the maximum amount one can consume over a given period without reducing the value of one’s wealth is the _____. a. definition of income used to approximate in-kind benefits b. Fisher definition of income c. Laffer definition of income d. Haig-Simons definition of income ANSWER d
Date: September 9th, 2020
When an employer provides in-kind benefits to employees, the In-kind benefits are _____. a. never taxed as income b. sometimes taxed as income c. always taxed as income d. always taxed as consumption ANSWER b
Date: September 9th, 2020
If a nation’s level of military expenditures is just below the optimal level _____. a. the nation’s borders will be unprotected b. the nation will not be protecting its interests abroad c. the nation will not be projecting economic force d. it is unclear what the marginal cost will be ANSWER d
Date: September 9th, 2020
A special interest will be able to influence a legislature’s actions _____. a. only if there are not special interests on the other side of the issue b. if enough members of the legislature are corrupt c. up to the point where the marginal political support they provide equals the marginal political opposition of other […]
Date: September 9th, 2020
Since 1945, national defense expenditures as a percentage of GDP have _____. a. fallen from 41 percent to 3.7 percent b. fallen from 32.1 percent to 20.1 percent c. fallen from 62.3 percent to 11.5 percent d. fallen from 50.5 percent to 9.6 percent ANSWER a
Date: September 9th, 2020
All else held constant, as the variance of a payoff increases, the A) expected value of the payoff increases. B) risk of the payoff increases. C) expected value of the payoff decreases. D) risk of the payoff decreases. ANSWER B
Date: September 9th, 2020
