Often, in criminal court, the judge will sentence a defendant to 10 days in jail or a $500 fine. Some choose jail time, others the fine. What best determines their choice?
a. They compare the loss of utility from doing time versus the loss of utility from giving up the $500 . If the loss of utility associated with the $500 is greater, they willchoose jail time
b. If they can earn $500 or more in 10 days, they will choose the fine.
c. If they can earn no more than $499 in 10 days, they will choose the fine.
d. Jail time generally has a utility of zero. If the utility of the $500 is greater than zero, they will choose the fine.
e. Jail time generally has a utility of zero. If the utility of the $500 is greater than zero, they will choose jail time.
A
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Which of the followings is NOT a current duty of the Board of Governors of the Federal Reserve System?
A) setting margin requirements, the fraction of the purchase price of the securities that has to be paid for with cash B) setting the maximum interest rates payable on certain types of time deposits under Regulation Q C) approving the discount rate "established" by the Federal Reserve banks D) voting on the conduct of open market operations
Which of the following is a reason why the measurement of GDP is not useful in the measurement of the standard of living of a country?
a. GDP includes what is spent on environmental protection and health care, but it does not include actual levels of environmental cleanliness and health. b. GDP includes the income of the non-residents of a country, and as a result does not reflect the actual income of the residents of the country. c. GDP includes the value of exports of a country, but it does not include the scarcity of goods and services within the country that is created due to exports. d. GDP includes many non-economic activities, but it ignores crucial economic activities like imports.