Soran is risk averse. If her wealth rises by $100, her total utility increases by 300. If her wealth increases, her total utility will decrease
A) by more than 300.
B) by less than 300.
C) by 300.
D) by some amount that cannot be determined without more information.
A
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The value of an item expressed in today's dollars is known as
A) inflation. B) deflation. C) the nominal value. D) the real value.
The excess burden of a tax is:
a. the amount by which the price of a good increases. b. the loss of consumer and producer surplus that is not transferred to the government. c. the amount by which a person's after-tax income decreases as a result of the new tax. d. the welfare costs to firms forced to leave the market due to an inward shift of the demand curve.
An instance in US history when SRAS increased was
a. The Great Depression (1930s) b. WWII (early 40s) c. OPEC (70s) d. Tech Boom (90s)
Refer to Figure 5.2, which shows a family of average cost curves. The average fixed cost curve is represented by:
A. Curve 1. B. Curve 2. C. Curve 3. D. the vertical sum of curve 1 and curve 2.