Jimmy's utility of wealth schedule is given in the table above. Jimmy has a job with a one-third chance of earning $200 and a two-thirds chance of earnings $400. Jimmy's cost of risk is
A) $0.
B) $16.67.
C) $33.33.
D) Jimmy's cost of risk cannot be determined without more information.
C
You might also like to view...
The table above gives Jane's total utility from magazines and CDs. The price of a magazine is $4 and the price of a CD is $10. What is the marginal utility per dollar from magazines when the sixth magazine is purchased?
A) 36 units B) 15 units C) 9 units D) 5 units
When oranges increase in price, the income effect
A) decreases the consumption of oranges only if oranges are a normal good. B) decreases the consumption of oranges only if oranges are an inferior good. C) always increases the consumption of oranges. D) always decreases the consumption of oranges.
A medical doctor who specializes in a particular field (e.g., surgery) generally earns more than a general practitioner because
a. of greater education and training requirements b. of differences in labor mobility c. a general practitioner is more likely to work in an urban area d. of discrimination e. a general practitioner treats a greater number of patients per day
If the AD and AS curves intersect in the upward-sloping segment of the AS curve, and then OPEC raises oil prices by 300 percent, we should expect to see the price level
a. rise and real GDP to rise b. rise and real GDP to fall c. rise and the unemployment rate to fall d. fall and real GDP to rise e. fall and the unemployment rate to rise