Suppose there's an 80% chance of a stock rising by 20% and a 20% chance of it falling by 40%. Which type of investor would prefer an investment with a guaranteed return of 5%?
A) risk loving investor
B) risk neutral investor
C) risk averse investor
D) risk is not relevant in this example
C
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The absolute value of the slope of the production possibilities curve is the
A. marginal rate of substitution. B. contract curve. C. offer curve. D. Engel curve. E. marginal rate of transformation.
Autonomous expenditure is not influenced by
a) the price level b) the interest rate c) real GDP d) any other variable
If the U.S. were to place a carbon tax on fossil fuels, we can expect:
A. the price of fuel oil to decrease. B. the price of fuel oil to increase. C. no change in the price of fuel oil. D. an increase in demand for fuel oil.
As interest rates ________, a firm would have to pay less now to purchase the same number of future dollars.
A. remain unchanged B. rise C. fall D. Interest rates have no bearing on the payment for future dollars.