Catherine is risk-averse. When faced with a choice between a gamble and a certain level of wealth she will
A) always prefer the gamble.
B) always prefer the certain level of wealth.
C) prefer the gamble if the expected utility from it is higher than the utility from the certain level of wealth.
D) prefer the certain level of wealth if the expected utility from the gamble is higher than the utility of the certain level of wealth.
C
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A reason that economists keep an eye on both M2 and M1 is because
A) money market accounts are sometimes used like checking accounts and sometimes like savings accounts. B) during a recession, M1 is meaningless. C) M2 is more accurate than M1. D) both fluctuate widely and frequently in total dollar value.
Firms in Thailand that had ________ while the baht was pegged to the dollar faced interest payments that were higher than they had planned once the Thai government abandoned the peg because the baht had been pegged ________ the equilibrium exchange
rate for the baht. A) borrowed dollars; above B) borrowed baht; above C) borrowed baht; below D) borrowed dollars; below
If a member of a cartel is the first to alert authorities to the cartel behavior, which of the following will occur to this member firm?
A) The firm will face significant fines. B) The firm's most senior managers will face jail time. C) The firm will not be considered whistle -blowers. D) The firm will not be penalized.
Whenever a society forgoes current consumption to invest in capital goods,
A) the less the society can consume next year. B) the easier it will be for the society to consume less in the future because people will become accustomed to less. C) the more the society can consume in the future. D) the less capital the society can produce in the future.