Someone who is risk-neutral has
A) diminishing marginal utility of wealth.
B) constant marginal utility of wealth.
C) increasing marginal utility of wealth.
D) less marginal utility of wealth than someone who is risk-preferring.
B
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The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
Which of the following will cause the average cost curve of making cigarettes to shift?
A) a $5 million penalty charged to each cigarette maker B) a $1 per pack tax on cigarettes C) a $1 an hour wage increase paid to all cigarette production workers D) All of the above
The cost of capital is determined by
A) bankers. B) the capital market. C) the federal budget deficit. D) the foreign exchange market.
Which of the following has occurred for the United States since 1960?
A) The ratio of exports to GDP (X/Y) and the ratio of imports to GDP (IM/Y) have both decreased. B) X/Y has increased while IM/Y has decreased. C) X/Y has decreased and IM/Y has increased. D) X/Y and IM/Y have stayed relatively constant. E) none of the above