Svetlana is risk averse. Which of the following is correct about Svetlana?
a. Her marginal utility of wealth increases as her income increases.
b. She will always accept a bet if the probability of winning a dollar is the same as the probability of losing a dollar.
c. Her utility function is a straight line.
d. None of the above are correct.
d
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An advance in technology shifts the production function upward and shifts the labor
A) demand curve leftward. B) supply curve leftward. C) demand curve rightward. D) supply curve rightward.
If an economy is operating at a point inside the production possibilities curve, then
A) society's resources are being inefficiently utilized. B) the curve will move to the left. C) society's resources are being used to produce too many consumer goods. D) economic policy must implemented to slow growth of the economy further.
Governments can use price elasticity of demand to estimate how changes in excise tax rates will affect:
a. income. b. prices. c. tax revenues. d. government spending. e. profits.
Market failures include all of the following EXCEPT
A) buyers pay for all the costs involved in the production of goods and services. B) public goods. C) positive externalities. D) negative externalities.