A risk-averse individual has
A) an increasing marginal utility of income.
B) an increasing marginal utility of risk.
C) a diminishing marginal utility of income.
D) a diminishing marginal utility of risk.
E) a constant marginal utility of income, but a diminishing marginal utility of risk.
C
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Suppose there are two economies, Alpha and Beta, that have the same production possibilities frontiers. If Beta devotes more resources to produce capital goods than consumer goods as compared to Alpha, then in the future
A. Beta will experience greater economic growth than Alpha. B. Alpha will not be able to achieve full employment or productive efficiency. C. Alpha will experience greater economic growth than Beta. D. Beta will not be able to achieve full employment or productive efficiency.
If we depict a simultaneous move, complete information game in a game tree, each player only has one information set no matter how many players there are in the game.
Answer the following statement true (T) or false (F)
The term "born with a silver spoon in his mouth" mistakenly implies
A) only monetary endowments allow one to trade with others. B) only the wealthy are strong negotiators in trade. C) endowments are physical. D) endowments differ.
In the prisoner's dilemma game:
A. neither player has a dominant strategy. B. both players have a dominant strategy. C. only one player will ever have a dominant strategy. D. All of these may be true in a prisoner's dilemma game.