Which of the following phenomena shows that risk aversion is the characteristic of many people?
A. The popularity of high-stakes poker tournaments
B. Homeowners insurance
C. Investing in one stock rather than a portfolio
D. Horse-race betting
Answer: B
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An item's ability to serve as money does not depend on its own market value or _______________
Fill in the blank(s) with the appropriate word(s).
When the factor market is purely competitive, the firm's average expenditure curve for a factor of production is
A) upward sloping and to the right of the marginal expenditure curve. B) downward sloping and to the right of the marginal expenditure curve. C) identical to the marginal expenditure curve. D) downward sloping and to the left of the marginal expenditure curve.
Which of the following is one of the main features of our modern economy that helps ensure against a repeat performance of the Great Depression?
a. transfer payments b. outsourcing c. multiplier d. personal income tax
Briefly describe how competition may reduce discrimination. Give an example.
What will be an ideal response?