Taking actions that reduce risk
A) raise your expected value.
B) makes you less risk-averse.
C) are impractical in most circumstances.
D) change your utility function.
A
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One thousand adults live in Milltown. Every day, they all leave work at 4:30 p.m., arrive home at exactly 5:00 p.m., and go to bed at 9:00 p.m. Three fundraisers, Alpha, Beta, and Charlie, have targeted Milltown's population. To get a donation, they must call Milltown's residents after they get home from work but before they go to bed. Because the charities raising the funds are identical, the first to call a willing donor will get the donation. Beta's manager has decided that the best time to call is 7:00 p.m. because it is exactly halfway between 5:00 p.m. and bedtime. Which of the following is true?
A. Alpha and Charlie will also make calls at 7:00 p.m. B. Beta is certain to generate the most donations. C. Alpha and Charlie will divide up the rest of the market, with one choosing to call at 6:00 p.m. and the other at 8:00 p.m. D. Beta's manager did not choose wisely.
Which of the following would NOT tend to increase the buying price in an oligopsony?
A) More buyers in the market B) Collusion among the buyers C) More elastic supply D) Rightward shift in the MV curve
Trade restrictions
A. Reduce the gains from trade for the country as a whole. B. Increase the gains from trade for poor countries. C. Increase the standard of living for the country as a whole. D. Reduce the number of hours employees must work.
The demand for cars in a certain country is given by: D = 20,000 - P, where P is the price of a car. Supply by domestic car producers is: S = 5,000 + 0.5P. If this economy opens to trade while the world price of a car is $6,000, and the government imposes a quota allowing 3000 cars to be imported, then domestic equilibrium quantity of cars will be ________.
A. 8,000 B. 12,000 C. 6,000 D. 10,000