Refer to the data provided in Table 17.5 below to answer the following question(s). The table shows the relationship between income and utility for Lucy.
Table 17.5 IncomeTotal Utility $00$10,00010$20,00020$30,00030$40,00040Refer to Table 17.5. From the table, we can see that Lucy is
A. risk-loving.
B. risk-averse.
C. risk-neutral.
D. We cannot determine Lucy's attitude toward risk from the table.
Answer: C
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Tim Tupper's term paper-typing business is a perfectly competitive firm in long-run equilibrium. Which of the following does not describes the firm's situation?
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a. for all savers. b. only for savers with fixed accumulation targets. c. for all savers except those with fixed accumulation goals. d. only for those contemplating retirement.
The problem for a central bank setting a zero inflation policy would be:
A. firms would have to cut the nominal wage to reduce the real wage. B. economic growth would also have to be zero. C. it is impossible to have zero inflation. D. the risk of high employment.