Someone who is risk-averse is likely to:
A. buy a government bond instead of a stock.
B. invest in a start-up company instead of putting her money under her mattress.
C. buy company stock instead of putting money in a savings account.
D. All of these statements are true.
A. buy a government bond instead of a stock.
You might also like to view...
The deadweight loss of a tax
A) is the transfer of income from households to the government. B) determines the incidence of a tax. C) is part of the total burden of a tax. D) is greater than the total burden of a tax. E) equals the tax revenue collected by the government.
For a risk-averse person, an indifference curve representing the different combinations of variance of return and expected return will be downward sloping and convex to the variance of return axis
Indicate whether the statement is true or false
A $2 tax per gallon of paint placed on the buyers of paint will shift the demand curve
a. downward by exactly $2. b. downward by less than $2. c. upward by exactly $2. d. upward by less than $2.
Which of the following statements is false?
A) Capital consists of produced goods that can be used as inputs for further production.
B) The terms resources, inputs, and factors of production are synonyms.
C) Labor consists of the physical, but not mental, talents of people who contribute to the production process.
D) Entrepreneurship is one of the four categories of resources.
E) The resource category land includes natural resources, such as minerals, forests, water, and unimproved land.