When tastes are risk averse, an individual will always choose less risk over more risk.
Answer the following statement true (T) or false (F)
False
Rationale: This is not true if the expected value of the risky gamble is sufficiently higher than the expected value of the less risky gamble.
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Claire has just eaten her second bowl of cereal. We can say:
A. her second bowl likely reduced her total utility. B. her second bowl likely added less to her total utility than the first. C. her third bowl will likely decrease her total utility. D. her third bowl will likely increase her total utility by at least as much as the second.
Which of the following statements is most correct?
A. Financial instruments are created to transfer risks that are relatively easy to predict. B. When a risk is difficult to predict, financial instruments are created to transfer these risks. C. Financial instruments require certainty of an event to be able to transfer risk. D. Financial instruments eliminate the risk from uncertainty, they do not transfer it.
All of the following are market determinants of exchange rates EXCEPT
A. changes in productivity in one country relative to another. B. changes in the relative prices of goods and services within a country. C. changes in real interest rates in one country relative to another. D. changes in product preferences between countries.
Refer to the information provided in Figure 7.6 below to answer the question(s) that follow. 
Figure 7.6Refer to Figure 7.6. If the price of capital is $10 and the price of labor is $20, the optimal production technique is
A. A. B. B. C. C. D. D.