Refer to Figures d and e. Water is crucial for survival, but it is particularly valuable during a drought when water is scarce. The probability of a drought is (1 - P), WD represents the quantity of water in a drought, while WR represents the quantity of water in a rainy season. Which set of indifference curves above best represent a relatively high probability of a drought?
A. Figure d
B. Figure e
C. Probabilities do not influence indifference curves.
D. Both Figures represent a relatively low probability of a drought.
B. Figure e
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The above table has data from the nation of Atlantica. Based on these data, at what point does saving equal zero?
A) None, dissavings is present at all of the above points. B) Between disposable income of $0.0 and $1.8 trillion C) Between disposable income of $4.0 trillion and $5.8 trillion D) Between disposable income of $2.0 trillion and $3.2 trillion E) None, savings is present at all of the above points.
The presence of correlated error terms creates problems for inference based on OLS. These can be overcome by
A) using HAC standard errors. B) using heteroskedasticity-robust standard errors. C) reordering the observations until the correlation disappears. D) using homoskedasticity-only standard errors.
What causes employers or employees to behave opportunistically?
In economics, capital is defined as a financial asset such as stocks and bonds
Indicate whether the statement is true or false