On any given day, a salesman can earn $0 with a 30% probability, $100 with a 20% probability, or $300 with a 50% probability. His expected earnings equal

The Ricardian equivalence implies that

A) the level of government spending has no impact. B) the level of taxes has no impact. C) the distribution of government expenses though time has no impact. D) the distribution of taxes through time has no impact.

Which of the following provides the strongest evidence that a firm operating in the highly competitive retail sector is failing to provide goods and services that consumers value highly relative to their cost?

a. The firm is making losses, and its sales are declining. b. The top-level managers of the firm are paid high salaries. c. The wages earned by the employees of the firm are low. d. The firm is a large corporation. e. The firm is highly profitable, and its sales have grown rapidly.