"Do not put all your eggs in one basket" is an advice that seeks to reduce:
A. Idiosyncratic risk
B. Non-diversifiable risk
C. Systemic risk
D. Market risk
A. Idiosyncratic risk
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A by-product of the acceptance of the Keynesian school was the wide approval and practice of activist government fiscal policy around the world
a. True b. False Indicate whether the statement is true or false
Refer to the data provided in Table 17.1 below to answer the following question(s). The table shows the relationship between income and utility for Jane.Table 17.1 IncomeTotal Utility $00$20,00025$40,00045$60,00060$80,00070Refer to Table 17.1. Suppose Jane has a 1/3 chance of becoming disabled in any given year. If she does become disabled, she will earn $0. If Jane does not become disabled, she will earn her usual salary of $60,000. Jane has the opportunity to purchase disability insurance for $20,000 which will pay her her full salary in the event she becomes disabled. Jane's utility per year with the policy is ________ and her expected utility without the policy is ________.
A. 45; 45 B. 20; 45 C. 45; 40 D. 60; 40
The demand for the Franconian franc in the foreign exchange market equals 14,000 - 3,000e and the supply of francs in the foreign exchange market equals 2,000 + 2,000e, where e is the nominal exchange rate expressed in U.S. dollars per franc. If the franc is fixed at 3 U.S. dollars per franc, then to maintain this fixed rate Franconia's international reserves must:
A. increase by 3,000 francs per period B. decrease by 9,000 francs per period C. increase by 9,000 francs per period D. decrease by 3,000 francs per period
In long-run perfectly competitive equilibrium, which of the following is false?
A) There is efficient, low-cost production at the minimum efficient scale. B) Economies of scale are exhausted. C) Economic surplus is maximized. D) Firms earn economic profit.