Suppose interest of 5% for two years can be earned on $1,000 saved today with no risk. What is the least amount a person would need to have a 50% chance of winning to be willing to face a 50% chance of losing $1,000 today and be considered risk averse?
a. $907.03 to be paid in two years
b. $1,000.01 to be paid in two years
c. $1,100.01 to be paid in two years
d. $1,102.51 to be paid in two years
d
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Supply-side advocates believe that when taxes and regulations are too burdensome, people will: a. save less
b. work less. c. provide less investment capital. d. do all of the above.
If $1 = 1.50 euros, then what is the equivalent euro price of a clock selling for $30 in the United States?
a. 20 euros b. 30 euros c. 45 euros d. 60 euros
A consumer is buying the optimal amount of goods when
A. the marginal utility from the purchases of all the goods purchased is the same. B. the total utility from the purchases on all the goods purchased is the same. C. the marginal utility from the purchases of all the goods is equal to 1. D. the marginal utility per last dollar spent on all of the goods purchased is the same.
What are the major criticisms of the Lorenz curve?
What will be an ideal response?