In the economic way of thinking, all ignorance is ultimately
A) rational ignorance.
B) irrational.
C) inefficient.
D) unjust.
E) selfish.
A
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A farmer who has fixed amounts of land and capital finds that total product is 24 for the first worker hired; 32 when two workers are hired; 37 when three are hired; and 40 when four are hired. The farmer's product sells for $3 per unit and the wage rate is $13 per worker. The marginal revenue product of the second worker is
A. $24. B. $8. C. $9. D. $15.
Suppose the price of coffee is $3 each, the price of bagels is $2 each and a person's budget is $40. The relative price of coffee is
A) 1.5 bagels. B) 2/3 of a bagel. C) 13.33 bagels. D) 20 bagels.
The idea of risk aversion
A) is at odds with the idea of insurance. B) help explain the profitability of insurance companies. C) has nothing to do with insurance companies. D) help explain the losses suffers by the insurance industry. E) help explain why insurance companies in the long run are zero profit companies.
If a financial institution has 50% of its portfolio in a bond with a five-year duration and 50% of its portfolio in a bond with a seven-year duration, what is the duration of the portfolio?
A) 12 years B) 7 years C) 6 years D) 5 years