Refer to the data provided in Table 17.3 below to answer the following question(s). The table shows the relationship between income and utility for Terri.Table 17.3 IncomeTotal Utility $00$20,00010$40,00025$60,00045$80,00075Refer to Table 17.3. From the table, we can see that Terri is
A. risk-averse.
B. risk-neutral.
C. risk-loving.
D. We cannot determine Jane's attitude toward risk from the table.
Answer: C
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If an average cost pricing rule is imposed on the firm in the figure above, the consumer surplus will be
A) zero. B) $450. C) $400. D) $200.
The Baker Plan for addressing the debt crisis was based on the assumption that
A) most countries would eventually default on their debt. B) forgiveness of some of the debt was inevitable. C) renewed lending by U.S. and European banks would undermine push for economic reforms. D) hyperinflation would eventually reduce the real value of the debt. E) renewed lending by U.S. and European banks would restore growth and make the debt manageable.
In the short run, nominal wages and other input prices are assumed to be:
A. Unresponsive to product price-level changes, but in the long run they are assumed to be responsive B. Unresponsive to product price-level changes, and in the long run they are assumed to be unresponsive also C. Responsive to product price-level changes, but in the long run they are assumed to be unresponsive D. Responsive to product price-level changes, and in the long run they are assumed to be responsive also
Refer to the table below. As the firm increases the number of employee-hours each day from 1 to 2, output increases by:OutputPer DayNumber ofEmployeeHours Per Day00331662994132716511
A. 66 units. B. 33 units. C. 99 units. D. 132 units.