Your bike is worth $100 and if you park it outside at school there is a 25% chance that it will be stolen. Your utility function for money is 
. Assume throughout that the bike value and money are interchangeable since you could sell the bike instantly at its value if necessary. Are you a risk lover, risk neutral or risk averse?
What will be an ideal response?
Since your marginal utility for money is decreasing you are risk averse.
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When society receives more benefits from a good than the individuals who consume the good,
a. the marginal social benefit for the good is less than the marginal social cost b. too much of the good would be produced by a private market c. property rights are assignable and well defined d. the good produces a positive externality e. the good is exhaustible with fixed-production technology
Which core principle(s) could you use to explain why credit card issuers charge such high rates of interest?
What will be an ideal response?
When the average total cost is at its minimum, it is
A. greater than MC. B. equal to MC. C. smaller than MC.
________ is available only to low-income families with children.
A. Medicaid B. The Earned Income Tax Credit C. Medicare D. The SNAP program