Refer to the data provided in Table 17.6 below to answer the following question(s). The table shows the relationship between income and utility for Isabel.Table 17.6 IncomeTotal Utility $00 $40,00020 $80,00050$120,00090$160,000150Refer to Table 17.6. From the table, we can see that Isabel is
A. risk-neutral.
B. risk-loving.
C. risk-averse.
D. We cannot determine Isabel's attitude toward risk from the table.
Answer: B
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A large open economy's real interest rate will decrease if
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Gross domestic product (measured in real dollars) is an important social tool because it provides
a. observers with a reasonably good index of social progress. b. policy makers with a measure of the nation's total wealth. c. policy makers with information about the economy's current rate of output and the direction of recent changes. d. economists with a reasonably good measure of income inequality.
A rational decision maker always chooses the option for which marginal benefit is:
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