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 rational decision maker always chooses the option for which marginal benefit is:
A. less than marginal cost. B. equal to marginal cost. C. unrelated to marginal cost. D. more than marginal cost.
A large open economy's real interest rate will decrease if
A) the expected future marginal product of domestic capital rises. B) the expected future marginal product of foreign capital rises. C) there is a temporary positive domestic supply shock. D) there is a temporary negative domestic supply shock.