Season tickets entail a certain amount of risk due to unpredictable team quality, injuries, weather, and so forth. Who is most likely to purchase season tickets?
A) Sally, who is a rabid fan and is not wealthy
B) Jim, who is a rabid fan and is risk neutral
C) Roger, who is a rabid fan but is risk averse
D) Jenn, who is a fan and is very wealthy
B
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Refer to Figure 12-14. Consider a typical firm in a perfectly competitive industry which is incurring short-run losses. Which of the diagrams in the figure shows the effect on the industry as it transitions to a long-run equilibrium?
A) Panel A B) Panel B C) Panel C D) Panel D
A bank's balance sheet can show a negative net worth and yet its income statement can show a profit for the year
a. True b. False
The substitution effect of a decrease in the wage rate would lead most people to
a. supply less labor and demand less leisure. b. supply less labor and demand more leisure. c. supply more labor and demand less leisure. d. supply more labor and demand more leisure.
Which of the following actions by the Fed would cause the money supply to increase?
A. Purchases of government bonds from banks. B. An increase in the reserve requirement. C. An increase in the discount rate. D. Sales of government bonds to the public.