John Brown's utility of income function is U = log(I+1), where I represents income. From this information you can say that
A) John Brown is risk neutral.
B) John Brown is risk loving.
C) John Brown is risk averse.
D) We need more information before we can determine John Brown's preference for risk.
C
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Of all the cars made in the United States, General Motors makes only ______ percent of them.
Fill in the blank(s) with the appropriate word(s).
The Keynesian cause-and-effect sequence predicts that a decrease in the money supply will cause interest rates to:
A. fall, boosting investment and shifting the AD curve rightward, leading to an increase in real GDP. B. fall, boosting investment and shifting the AD curve rightward, leading to a decrease in real GDP. C. rise, cutting investment and shifting the AD curve leftward, leading to a decrease in real GDP. D. rise, boosting investment and shifting the AD curve rightward, leading to an increase in real GDP.
The quantity theory of money predicts that, in the long run, inflation results from the
A) velocity of money growing at a faster rate than real GDP. B) velocity of money growing at a lower rate than real GDP. C) money supply growing at a lower rate than real GDP. D) money supply growing at a faster rate than real GDP.
We derive the ________ for X from indifference curves and a budget constraint by changing the price of X.
A. marginal utility B. supply curve C. demand curve D. total utility