Policies based on positive economic ideas tend to decrease economic efficiency and reduce equity
Indicate whether the statement is true or false
FALSE
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Given the information in the above table, the relationship between x and y is
A) positive, and the curve becomes flatter as x increases. B) positive, and the curve becomes steeper as x increases. C) positive and linear. D) negative and linear.
By hedging a portfolio, a bank manager
A) reduces interest-rate risk. B) increases reinvestment risk. C) increases exchange-rate risk. D) increases the probability of gains.
Gold is a perfect medium of exchange and measure of value because of its:
a. divisibility, portability, and homogeneity. b. divisibility and durability. c. durability and relative scarcity. d. durability and homogeneity. e. divisibility, durability, and relative scarcity.
Suppose Dean has $500 and there are two companies he could invest X dollars in: Dog Gone Salon, which has a payoff of 2X with 50% probability and $0 with 50% probability and Pretty Kitty Grooming, which has a payoff of 4X with 25% probability and $0 with 75% probability. Dean's expected payoff from investing in Pretty Kitty Grooming only is:
A. $500. B. $2,000. C. $1,000. D. $1,500.