Refer to Scenario 5.6. If the doctor is risk-averse, she would accept
A) $50,000 for sure rather than take the risk of being a researcher.
B) $60,000 for sure (the minimum HMO outcome) rather than take the risk of being a researcher.
C) $95,000 for sure rather than face option 1 and option 2 in research.
D) $275,000 for sure (the average of option 1 and option 2 in research), but not less, rather than face the risk of those two options.
E) the research position because it has the highest possible income.
C
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Under a market system, the people with information about buyers' desires, production technology and resources make the decisions
Indicate whether the statement is true or false
What is the national income identity for an open economy?
What will be an ideal response?
If an economy with constant returns to scale were to double its physical capital stock, its available natural resources, and its human capital, but leave the size of the labor force the same,
a. its output would stay the same and so would its productivity. b. its output and productivity would increase, but less than double. c. its output and productivity would increase by more than double. d. None of the above is correct.
When disposable income is 3500, induced consumption is
A. -500.
B. 0.
C. 500.
D. 750.