A risk-averse investor will decide whether or not to invest by determining if the expected value of the investment if positive
Indicate whether the statement is true or false
False. A risk-averse investor will examine the expected utility from investing. If the expected utility from investing is larger than the expected utility from not investing the investment will be made.
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Alex has allocated his income in such a way that the marginal utility of the last unit of product X he consumes is 40 utils and that of the last unit of Y is 16 utils. If the unit price of X is $5, then the price of Y must be
A. $1 per unit. B. $3 per unit. C. $2 per unit. D. $4 per unit.
Suppose you use your debit card to buy soda from a soda machine. Which of the following is true regarding the transaction?
A) The debit card is not money; it's only an instruction to make a loan. B) The debit card is money; your use reflects the exchange of a good. C) The debit card is not money; its use is only a tool to cause money to move from your account. D) Your use makes the debit card money, as funds are transferred between your account and the machine owner. E) Using the debit card is like using a check and is, therefore, money.
Suppose we have an economy in which G = 1100, t = 0.26, Y = 3800, and YN = 4000. The natural employment deficit is
A) 60. B) 200. C) 840. D) 286. E) -112.
Firms face trade-offs in production, including decisions related to:
A how much of a particular product to produce. B which products to produce. C the best way to produce a given amount of output. D all of the above