Bob invests $50 in an investment that has a 50% chance of being worth $100 and a 50% chance of being worth $0. From this information we can conclude that Bob is NOT
A) risk loving.
B) risk neutral.
C) risk averse.
D) rational.
C
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A change in the demand for apples could result from any of the following EXCEPT
A) a change in the number of buyers. B) increased preferences for fresh fruit consumption for health reasons. C) a change in the price of an apple. D) a change in the price of a banana. E) a change in income.
A geographic region in which the benefits of having a common currency exceed the costs is
A) an optimum currency area. B) an exchange-rate mechanism. C) a currency board area. D) a common currency area.
Firms in a monopolistically competitive market structure maximize their profit by producing an output where:
a. price equals average total cost. b. marginal cost equals average total cost. c. marginal cost equals price. d. marginal revenue equals marginal cost.
In the simple aggregate expenditure model, the slope of the aggregate expenditure line depends on: a. interest rates
b. real gross domestic product. c. the price level. d. the marginal propensity to consume. e. the marginal propensity to save.