Someone who values a lottery at less than the expected value is
a. a risk lover
b. risk neutral
c. risk averse
d. one who tends to play lots of lotteries
c
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Economic growth can be shown by
A) a rightward shift in the aggregate supply curve. B) a leftward shift in the aggregate supply curve. C) a leftward shift in the production possibilities curve. D) no change in the aggregate supply curve.
The labor force equals the number of people
A) in the working-age population. B) employed. C) unemployed. D) employed plus unemployed.
Financial innovations such as direct deposit of paychecks, electronic payment of bills, and automated teller machines (ATMs) have likely ________
A) had minimal effect on M1 and M2 B) reduced the size of M2 relative to M1 C) increased both M1 and M2 relative to GDP D) caused the growth rates of M1 and M2 to become more stable E) reduced the size of M1 relative to M2
An insured person's incentive to behave in ways that raise the probability of a claim is known as:
a. a moral hazard. b. the lemons problem. c. the problem of adverse selection. d. the problem of advantageous selection.