John's utility from an additional dollar increases more when he has $1,000 than when he has $10,000. From this, we can conclude that John
A) is risk averse.
B) is risk loving.
C) is risk neutral.
D) has a negative marginal utility of wealth.
A
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If an economy experiences deflation, the real interest rate
A) will be greater than the nominal interest rate. B) will be equal to the deflation rate, so long as the nominal interest rate is positive. C) will be negative when the nominal interest rate is positive. D) will be less than the nominal interest rate.
It is reasonable to assume that in a developed economy technological shocks occur ________ across industries, which ________ the RBC theory of business cycles
A) randomly, opposes B) randomly, supports C) uniformly, opposes D) uniformly, supports
A major goal of the World Trade Organization is to:
Increase the protection of producers against foreign trade competition Encourage bilateral trade agreements between nations reduce trade barriers and expand international trade among nations Maximize tariff revenue for governments
Automatic stabilizers are government programs or policies that will counteract the business cycle without any new government action.
Answer the following statement true (T) or false (F)