Afirm supplies aircraft engines to the government and to private firms. it must decide between two mutually exclusive contracts. if it contracts with a private firm, its profit will be $2 million, $1 million, or -$1 million with probabilities .25, .4, and .35, respectively. if it contracts with the government, its profit will be $4 million or -$2.5 million with respective probabilities .4 and .6. which contract offers the greater expected profit or loss?

a. the private contract offers the greater expected profit.
b. the government contract offers the greater expected profit.
c. both contracts offer the same expected profit.
d. the private contract results in a greater expected loss.
e. the government contract results in a greater expected loss.

Which statement best explains the relationship between points a and b? a. consumption reaches its highest point, and then supply begins to fall. b. inflation reaches its highest point, and then the economy begins to expand. c. production reaches its highest point, and then the economy begins to contract. d. unemployment reaches its highest point, and then inflation begins to decrease.

The state troopers in one state have a motto, “nine you’re fine; ten you’re mine,” which is the standard that they use for pulling over speeders on the state highways. in other words, if the posted speed limit is 55 mph, drivers can drive at a rate up to 64 mph without fear of getting a ticket. which of the following best describes the ethical culture in the state? a. the troopers are following a standard of positive law. b. the troopers are following a normative standard. c. the troopers are following a headline test. d. the troopers are following the blanchard/peale standard.

The interaction of individual choices because a type of fish is on the verge of extinction, the government imposes rules that prohibit fishing in the publicly owned spawning grounds. at first owners of fshing bouts complain about this restriction on where they can fish, but soon they notice that the number of adult fish swimming outside the protected area is much higher than it was before. with the restriction, each fishing boat ends up catching more fish than it did before the r which of the following principles of economic interaction best describes this scenario? o there is a tradeoff between equality and efficiency o markets usually lead to efficiency. o when markets do not achieve efficiency, government intervention can improve overall welfare o markets allocate goodseffectively