If a gamble has an expected value of $10, then one can predict that:
A. all risk-neutral people will take the gamble.
B. only risk-averse people will take the gamble.
C. the gamble never pays out more than $10.
D. no risk-averse person will take the gamble.
Answer: A
You might also like to view...
An estimator of ? is said to be linear if
A) it can be estimated by least squares. B) it is a linear function of Y1,…, Yn . C) there are homoskedasticity-only errors. D) it is a linear function of X1,…, Xn .
Lumicia Corporation spent $2 million to purchase a new technology that would lower its manufacturing cost by 15 percent. This will enable the company to sell its output cheaper than most other competitors. This improvement in the technology of production is most likely to result in a(n): a. upward shift of its aggregate production function
b. downward shift of its aggregate production function. c. rightward movement along its aggregate production function. d. leftward movement along its aggregate production function.
Assume Diana buys computers in a competitive market. It follows that
a. Diana has a limited number of sellers to turn to when she buys a computer. b. Diana will find herself negotiating with sellers whenever she buys a computer. c. if Diana buys a large number of computers, the price of computers will rise noticeably. d. None of the above is correct.
Goods and services for which network concerns are important have ________ demand.
A. relatively inelastic B. relatively elastic C. unitary elastic D. perfectly inelastic