Natasha is going to buy a risky asset that has an expected value of $62, which yields an expected utility of 146. Her risk premium is $19. What is her certainty equivalent?
A) $19
B) $43
C) $81
D) $208
B
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Which of the following will cause an inward shift of the production possibilities curve of an economy?
A) A decrease in the demand for goods and services B) Introduction of better technology C) A decline in the size of the labor force D) An increase in the opportunity cost of the goods being produced
The aggregate production function
A) measures the productivity of labor as leisure decreases. B) increases only with increases in productivity. C) shows that real GDP can increase because of increased productivity as well as increased labor hours. D) cannot show the impacts of productivity improvements.
A decrease in the marginal product of labor would be represented by a(n):
a. increase in labor demand. b. decrease in labor demand. c. increase in the quantity demanded of labor. d. decrease in the quantity demanded of labor. e. increase in wages.
If the demand for a product decreases, then we would expect equilibrium price
a. to increase and equilibrium quantity to decrease. b. to decrease and equilibrium quantity to increase. c. and equilibrium quantity to both increase. d. and equilibrium quantity to both decrease.