Refer to the data provided in Table 17.3 below to answer the following question(s). The table shows the relationship between income and utility for Terri.Table 17.3 IncomeTotal Utility $00$20,00010$40,00025$60,00045$80,00075Refer to Table 17.3. From the table, we can see that Terri is
A. risk-neutral.
B. risk-averse.
C. risk-loving.
D. We cannot determine Jane's attitude toward risk from the table.
Answer: C
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Which of the following concepts should be LEAST associated with behavior economics?
A. Choices that are hard to reconcile with standard economic theory B. Rejection of highly-mathematical economic models C. The use of laboratory experiments D. Neuroeconomics
The judicial doctrine, being a monopoly or attempting to monopolize is not in itself illegal; to be illegal, an action had to be shown to have negative economic effects, is called:
a. the "big is bad" policy. b. the per se rule. c. predatory price-cutting policy. d. the rule of law. e. the rule of reason.
The minimum point of the average total cost curve occurs at an output level that corresponds to
a. the maximum possible total cost b. an average total cost equal to the marginal cost of the next unit c. an average variable cost that is greater than the marginal cost of the next unit d. a marginal cost that is decreasing e. a constant average fixed cost
Answer the following statement(s) true (T) or false (F)
1. People put more effort into choosing political candidates than into choosing major purchases. 2. Rational ignorance suggests that people should not vote. 3. Special interest groups have no political power. 4. Public choice economists would like a smaller government presence. 5. Logrolling is a deal between a corporation and the government.