Some individuals choose to undertake risky prospects while others choose safer ones because they have different:
A. marginal utilities.
B. degrees of transitivity.
C. income elasticities.
D. marginal rates of substitution between risk and reward.
Answer: D
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What is the modern view of the Phillips curve?
What will be an ideal response?
A shortcoming of national income accounting is that it ignores: a. the depreciation of manufactured capital
b. spending by poor households who are receiving government transfer payments. c. spending on intermediate goods. d. the depletion of natural resources. e. U.S. products that are sold overseas.
In the long run, a sustained increase in money supply growth relative to the growth rate of potential real output will most likely: a. cause the nominal interest rate to fall
b. cause the real interest rate to fall. c. reduce the natural rate of unemployment. d. none of the above
Reasons that technological firms should avoid licensing: