Risk averse individuals will diversify their investments because this will
a. increase their expected returns.
b. provide them with some much-needed variety.
c. reduce the variability of their returns.
d. reduce their transactions costs.
c
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While eating at Alex's "Pizza by the Slice" restaurant, Clara experiences diminishing marginal utility. She received 10 utils from consuming the first slice of pizza and would only receive 5 utils from consuming a second slice, at the same price. Based on this information we can conclude that
A. Even if Clara buys a second slice, she will not buy a third slice. B. Clara will not eat a second slice, even if it is given to her at no charge. C. Alex may have to lower the price to convince Clara to buy a second slice. D. Clara will definitely want to buy a second slice of pizza.
Resources can be purchased
A) exclusively through the government. B) in the product markets. C) in the factor markets. D) at a grocery store.
In the above figure, the shift in the supply curve from S to S2 might reflect
A) a decrease in the cost of the tomato sauce used to produce pizza. B) a decrease in the number of pizza producers. C) an increase in the price of a pizza. D) an increase in income if pizza is a normal good. E) an increase in the price of a good that is a substitute for consumers.
Refer to Figure 10-6. The market is in equilibrium. If the government budget deficit rises, which of the following would you expect to see?
A) The budget deficit will have no impact on the quantity of loanable funds demanded by firms. B) The quantity of loanable funds demanded by firms will rise above $120 million. C) The interest rate will fall below 4 percent. D) The quantity of loanable funds demanded by firms will fall below $120 million.