On any given day we know a salesman can earn $0 with a 30% probability, $100 with a 20% probability or $300 with 40% probability. His expected earnings equal
A) $0.
B) $140.
C) $300.
D) It cannot be determined from the available information.
B
Economics
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Goods with upward sloping demand curves are referred to as
A) Marshall goods. B) Giffen goods. C) substitute goods. D) luxury goods.
Economics
Sketch a typical consumption contract curve in an Edgeworth box for you and her. The two products should be apples and tents. Identify two consumption baskets where you and she are off the contract curve. Label the first point (a) where you value apples much more than she does; label the second point (b) where you value apples much less than she does.
What will be an ideal response?
Economics