What are the different categories of risk preferences? Explain
What will be an ideal response?
The three categories of risk preferences are:
a) Risk-averse: Risk-averse people prefer to invest in options that have less risk.
b) Risk-neutral: Risk-neutral people do not care about the level of risk involved in investment options.
c) Risk-loving: Risk-loving people prefer to invest in options that have high risk.
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In a market of monopolistic competition, there will be
a. a kink in the demand curves for the output of the individual sellers. b. product differentiation. c. a substantial substitution effect whenever any one firm changes its price. d. All of these.
In the United States, the official poverty line is calculated by multiplying:
A. the average expenditure on housing for a family of a given size by 3. B. the cost of food for a family of a given size by 3. C. the average expenditure on housing for a family of a given size by 2. D. the cost of food for a family of a given size by 2.
How are monopolistic ally competitive industries identified with concentration ratios?
What will be an ideal response?
Public utilities are the classic examples of
A. industries protected by patents. B. industries owning a scarce factor of production. C. natural monopolies. D. industries with network effects.