The above figure shows the utility of wealth curve for a homeowner whose only possession is a $50,000 house. If there is a 20 percent chance that the home could be entirely destroyed, what is the person's expected wealth?

Explain the three lags that make it difficult to time changes in discretionary policy properly

"Regulatory capture" refers to the situation where a government agency charged with supervising and regulating a particular industry is:

A. Strongly influenced by the firms in that industry B. Headed by bureaucrats who have a "lock" on their positions, without any rivals C. Completely dominating the actions of firms in the industry D. Headed by unelected government officials