For a risk averse person,
a. the pleasure of winning $1,000 on a bet exceeds the pain of losing $1,000 on a bet.
b. the pain of losing $1,000 on a bet exceeds the pleasure of winning $1,000 on a bet.
c. the utility function exhibits the property of increasing marginal utility.
d. the utility function gets steeper as wealth increases.
b
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Refer to Figure d, which illustrates a game played by Travis and Darren. For Darren, East is:
A. the best response.
B. the dominant strategy.
C. weakly dominated.
D. dominated.
Compared to a country with an MPC of 0.8, a country with an MPC of 0.6 would have to change government expenditures by ________ as much to have the same impact on real GDP.
A. twice B. three times C. four times D. five times
For Kimbra, the marginal utility of having lawn mowing service once a month is 90 utils. Having the service a second time in a month is 70 utils, and a third time is 50 utils. What is the most likely estimate in utils for having the lawn mowing service a fourth time in a month?
a. 50 b. 30 c. 10 d. 0
Which of the following is a provision of the Federal Reserve Act or subsequent legislation that weakens the independence of the Federal Reserve?
a) The Federal Reserve's actions are subject to executive branch control. b) Members of the Federal Reserve Board serve 14-year terms. c) Members of the Federal Reserve Board cannot be reappointed. d) The Federal Reserve System is subject to Congressional oversight.