The individual pictured in Figure 5.2
A) must be risk-averse.
B) must be risk-neutral.
C) must be risk-loving.
D) could be risk-averse, risk-neutral, or risk-loving.
E) could be risk-averse or risk-loving, but not risk-neutral.
A
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The neoclassical growth theory says, in part, that
A) a population explosion driven by economic growth will end economic growth. B) technological change leads to economic growth. C) the differences in nation's growth rates will persist indefinitely. D) technology does not play a role in economic growth.
An externality occurs when
A) the costs of producing a good are paid entirely by the producer. B) some of the costs of producing a good are paid by someone other than the producer. C) the marginal social cost of an activity increases as that activity is increased. D) Both answers A and C are correct.
Upward mobility for those in poverty is
A. Not likely to happen at all because most people live in a caste system. B. More likely for people in poor nations than in rich nations. C. More likely for people in rich nations than in poor nations. D. Equally likely for people in rich nations and poor nations.
An excess demand for foreign currency at current exchange rates is known as a
A. Balance-of-payments surplus. B. Trade surplus. C. Trade deficit. D. Balance-of-payments deficit.