Suppose Dean has $500 and there are two companies he could invest X dollars in: Dog Gone Salon, which has a payoff of 2X with 50% probability and $0 with 50% probability and Pretty Kitty Grooming, which has a payoff of 4X with 25% probability and $0 with 75% probability. Which of the following is true?
A. It doesn't matter how distributes his $500 between the two investments, the expected payoff and the standard deviation will always be the same.
B. Even though the expected payoff is the same for both investments, investing in Dog Gone Salon involves less risk.
C. Even though the expected payoff is the same for both investments, investing in Pretty Kitty Grooming involves less risk.
D. Investing in Pretty Kitty Grooming offers a higher expected payoff.
B. Even though the expected payoff is the same for both investments, investing in Dog Gone Salon involves less risk.
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The average fixed cost curve
A) is always positively sloped. B) is U-shaped. C) has an upside-down U shape. D) is always negatively sloped. E) is horizontal.
The quantity produced in a monopolistically competitive market is ________ than the quantity produced in a perfectly competitive market, and the price charged in a monopolistically competitive market is ________ than the price charged in a perfectly
competitive market. A) higher; higher B) lower; higher C) higher; lower D) lower; lower
Which of the following shows a negative relationship between the output and unemployment gaps?
A) the AS curve B) the Phillips curve C) Okun's law D) the classical dichotomy E) none of the above
Based on the table showing global income inequalities, where are the most equal countries located?
a. southern Europe
b. northern Europe
c. North America
d. southern Africa