The Friedman-Savage utility function can explain why
A) people buy automobile insurance.
B) somebody becomes addicted to gambling.
C) people become more risk averse as their wealth increases.
D) people place small bets to have a chance at winning a large amount.
D
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Even if there are significant barriers to entry, firms may not be highly profitable
a. Substitute product offerings among rivals b. The ability of consumers to switch to substitute products easily c. All of the above d. None of the above
The radio broadcast of a concert is an example of a club good
a. True b. False Indicate whether the statement is true or false
Competitive forces will reduce the effects of employers’ discrimination over time.
Answer the following statement true (T) or false (F)
If aggregate demand shifts from AD1 to AD2,
A. both output and the price level will rise.
B. output will rise and the price level will fall.
C. output will rise and the price level will remain the same.
D. both output and the price level will fall.