Suppose there is a 30% chance that an oil spill will occur in an area and the economic damage of the potential spill is $1 million. What is the expected value associated with the spill?

How is foreign direct investment different from other types of international financial flows?

What will be an ideal response?

Firm A is a monopsonist that faces a labor supply elasticity of 2.4 whereas Firm B is a monopsonist that faces a labor supply elasticity of 1.4. Which of these monopsonists pays a higher wage?

A) Firm A B) Firm B C) They both pay the same. D) It is impossible to tell which pays a higher wage.