The less the bend (or arc), or more linear the utility function is, the ________ risk averse the person is.
Fill in the blank(s) with the appropriate word(s).
Answer: less
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When a per unit tax is imposed on the sale of a product of a monopolist, the resulting price increase will
A) always be less than the tax. B) always be more than the tax. C) always be less than if a similar tax were imposed on firms in a competitive market. D) not always be less than the tax.
Does low human capital cause poverty or does poverty cause low human capital?
A. The causality works both ways. B. Low human capital causes poverty, not the other way around. C. Poverty causes low human capital, not the other way around. D. There is no causal link between low human capital and poverty.
The consumption function shows the relationship between consumer expenditures and:
a. the interest rate. b. the tax rate. c. savings. d. disposable income.
If the price elasticity of demand for a good is 0.25, then a 20 percent decrease in price results in a
a. 0.0625 percent increase in the quantity demanded. b. 4 percent increase in the quantity demanded c. 5 percent increase in the quantity demanded. d. 80 percent increase in the quantity demanded.