A person that is risk averse
A) exhibits decreasing marginal utility of wealth.
B) exhibits increasing marginal utility of wealth.
C) always engages in fair bets.
D) loves lotteries.
A
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Which of the following is the most likely explanation for the imposition of a price floor in the market for corn?
a. Policymakers have studied the effects of the price floor carefully and they recognize that the price floor will improve the efficiency of resource use. b. Buyers and sellers of corn have agreed that the price floor is good for both of them and have therefore pressured policy makers into enacting the price floor. c. Buyers of corn, recognizing that the price floor is good for them, have pressured policy makers into enacting the price floor. d. Sellers of corn, recognizing that the price floor is good for them, have pressured policy makers into enacting the price floor.
If there is a surplus of a good, the quantity demanded is ________ the quantity supplied and the price will ________
A) equal to; fall B) less than; rise C) less than; fall D) greater than; fall E) greater than; rise
"When the Fed makes an open market purchase of government securities, the quantity of money will eventually decrease by a fraction of the initial change in the monetary base." Is the previous statement correct or incorrect? Explain your answer
What will be an ideal response?
Which of the following occurs with both perfectly price discriminating and single-price monopolies?
A) The amount of output is inefficient. B) All consumer surplus goes to the monopoly. C) Deadweight loss is created. D) There is a redistribution of consumer surplus to the monopoly.