What type(s) of individual will always choose a risk-free basket when offered a bet at fair odds?
a. A risk-neutral individual.
b. A risk-averse individual.
c. A risk-preferring individual.
d. Risk-neutral and risk-averse individuals.
b. A risk-averse individual.
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In general, one of the results of free trade is that the owners of domestically:
A. scarce factors of production lose due to increased competition. B. abundant factors of production lose from increased demand. C. scarce factors of production win due to increased consumers. D. abundant factors of production win from decreased demand.
Every year from 1954 to 1984, the U.S. economy was characterized by higher output and lower prices
a. True b. False Indicate whether the statement is true or false
Which of the following is an example of an import quota?
(A) 621,780 kilograms limit of an imported good. (B) 5 percent of the value of an imported good. (C) $220 per ton of an imported good. (D) 7 percent of the potential profits from an imported good.
The total earnings of a worker are represented by E = 100 + $10(24 ? L), where E is earnings and L is the number of hours of leisure. How many hours of leisure are consumed if this worker's total earnings are $160?
A. 18 hours B. 10 hours C. 16 hours D. 12 hours