The above figure shows Bob's utility function. He currently has $100 of wealth, but there is a 50% chance that it could all be stolen. Bob is
A) risk averse.
B) risk neutral.
C) risk loving.
D) risk premium.
A
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Provide a simple definition of the price elasticity of demand and explain why knowing the price elasticity for her product is useful to the firm's manager
What will be an ideal response?
If the Federal Reserve conducts open market ________, the money supply ________, shifting the LM curve to the right, everything else held constant
A) purchases; decreases B) sales; decreases C) purchases; increases D) sales; increases
Over the past 20 years, foreign financial investment in the United States has
A) increased significantly. B) decreased significantly. C) remained fairly consistent. D) become negative.
To have an ideal voting system in place, if a group is voting on option X versus option Y, this decision should not depend on any information or preference about another unconnected option, Z. In other words, which of the following criteria must be present in the voting system?
A. Unanimity B. No dictator C. Transitivity D. Independence of irrelevant alternatives