Diminishing marginal utility of wealth leads to risk aversion because at a given level of wealth a dollar gained
A) is worth more in additional utility than a dollar lost.
B) is worth less in additional utility than a dollar lost.
C) is worth as much in additional utility as a dollar lost.
D) does not add to total utility.
B
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A period of stagflation can be considered as part of the normal aftermath of a
A. decrease in aggregate demand. B. period of high unemployment. C. period of low unemployment. D. period of inward shifting aggregate demand.
Exchange controls in Peru _________
a. reduce quotas b. are illegal c. reduce tariffs d. are designed to float the exchange rate e. will ease the pressure on Peru's foreign exchange reserves if its exchange rate is fixed
Which of the following will most likely occur in the short run when the long-run equilibrium of an economy is disturbed by an unanticipated decrease in aggregate demand?
a. a decrease in output and a higher price level b. an increase in output and a higher price level c. a decrease in output and a lower price level d. an increase in output while prices remain unchanged
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. For this economy to move from Point B to Point C so that an additional 20 OLED televisions could be produced, production of LCD televisions would have to be reduced by
A. more than 30. B. exactly 60. C. fewer than 30. D. exactly 30.