Someone who values a lottery at its expected value is
a. A risk lover
b. Risk neutral
c. Risk averse
d. most likely to play a lottery
b
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If the cost per unit of output for a particular product is $50 and the product sells for $55, what is the percentage markup over cost per unit?
a. 200 percent b. 10 percent c. 100 percent d. 20 percent e. 50 percent
Refer to the above figure. Line ABCD is a(n)
A. aggregate demand curve. B. natural rate of unemployment curve. C. Phillips curve. D. discretionary-policy curve.
Which of the following products would most likely be produced in a monopolistically competitive market?
A. gasoline B. corn C. local water supply D. pizza
Dalton, Georgia, a town with a population less than 35,000, has developed into a leading producer of carpets, despite its small size. Some government officials argue that the success achieved by firms in Dalton in developing a comparative advantage in
carpet making because of external economies can be used to justify trade barriers as a means to protect an "infant industry." After an infant industry gains experience it can compete in international markets and the trade barriers can be removed. What objections do economists make to this argument in favor of trade barriers? What will be an ideal response?