Bob invests $25 in an investment that has a 50% chance of being worth $100 and a 50% chance of being worth $0. From this information we can conclude that Bob is
A) risk loving.
B) risk neutral.
C) risk averse.
D) Any one of the three above.
D
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In the Keynesian framework, as long as output is below the equilibrium level, unplanned inventory investment will remain ________ and firms will continue to ________ production
A) negative; lower B) negative; raise C) positive; lower D) positive; raise
On average across the world, the underground economy is worth about:
A. one-third of GDP. B. one-tenth of GDP. C. one-quarter of GDP. D. one-half of GDP.
The financial amount that a risk averse person requires to take on risk is called:
a. risk arbitrage. b. risk bonus. c. risk premium. d. risk capital. e. risk rate.
In an industry, when the cost curve of a firm is upward sloping at low levels of output relative to the market, it implies:
a. the industry is characterized by constant returns to scale. b. the industry has a high degree of competition. c. not many firms can operate together in this industry. d. the firm can charge a price lower than competition and still cover its costs.