Define what is meant to be risk-neutral
What will be an ideal response?
It refers to a person's willingness to take a bet with an expected value of zero.
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Other things remaining the same, a left shift in the supply curve will lead to:
A) a decrease in the equilibrium price and the equilibrium quantity. B) an increase in the equilibrium price and the equilibrium quantity. C) a decrease in the equilibrium price and an increase in the equilibrium quantity. D) an increase in the equilibrium price and a decrease in the equilibrium quantity.
Roughly how many times has the U.S. experienced a budget surplus since 1960?
A) 0 B) 5 C) 10 D) 20 E) 30
Consumption smoothing is a logical consequence of ________
A) basing decision-making on real rather than nominal interest rates B) the convexity of indifference curves and the ability to borrow and lend C) the negative slope fo the intertemporal budget constraint D) rational expectations
Drinking a can of cola gives Richard 20 utils of satisfaction. How many additional utils would you expect Richard would get from drinking a second can of cola?
(a) 20 utils. (b) Less than 20 utils. (c) More than 20 utils. (d) 40 utils.