Those who generally have low willingness to take on risk are said to be:
A. risk-seekers.
B. risk-averse.
C. low-risk players.
D. high-compensation players.
B. risk-averse.
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Assume the demand function for good X can be written as Qd = 80 - 3Px - 2Py + 10I where Px = the price of X, Py = the price of good Y, and I = Consumer income. This equation implies that X and Y are complements
Indicate whether the statement is true or false
To measure the "core" inflation rate, the Bureau of Economic Analysis uses a price measure that
A. excludes food and energy prices because the prices of these items can be volatile. B. includes food and energy prices because the se items account for a significant portion of the typical consumer's expenditures. C. is made up of a fixed basket that includes durable goods, non-durable goods, and services. D. includes prices for different components of gross private domestic investment, government spending, and personal consumption expenditures.
The portion of the Obama stimulus package that bolstered state unemployment plans is best thought of as
A. nondiscretionary fiscal policy. B. discretionary (and contractionary) fiscal policy. C. discretionary (and expansionary) fiscal policy. D. monetary policy.
When a consumer spends income so that the ratio of marginal utilities (MUs) of all goods purchased equals the ratio of their prices, the consumer is
a. maximizing marginal utility b. spending too much on all goods c. maximizing total utility d. beyond the point of diminishing marginal utility e. behaving in opposition to the principal of rational behavior