Expected wealth is a weighted average in which the weights are
A) average utilities.
B) marginal utilities.
C) total utilities.
D) probabilities.
D
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A nation can produce two products: steel and wheat. The table below is the nation's production possibilities schedule:Production Possibilities ScheduleProductABCDEFSteel012345Wheat100907555300In moving stepwise from possibility A to B to C … to F, the opportunity cost of a unit of steel in terms of wheat
A. increases at first then decreases. B. decreases. C. remains constant. D. increases.
What is the crowding-out effect and how does it operate? What is its relationship to the Ricardo-Barro effect?
What will be an ideal response?
If the Fed desired to reduce the federal funds rate,
A) it would conduct an open market sale, reducing reserve supply. B) it would conduct an open market purchase, increasing reserve supply. C) it would conduct an open market sale, increasing reserve demand. D) it would conduct an open market purchase, reducing reserve demand.
Consider the market for medical doctors. Suppose the opportunity cost of going to medical school increases for many individuals. Suppose it generally takes about ten years to become a practicing doctor. Holding all else constant, in ten years the equilibrium wage for doctors will
a. increase. b. decrease. c. not change. d. It is not possible to determine what will happen to the equilibrium wage.