Nancy's utility of wealth curve is given in the above figure. Option A gives Nancy $100 for sure. Option B gives Nancy $50 half the time and $150 half the time. Nancy's expected utility of option A
A) is greater than the expected utility of option B.
B) is the same as the expected utility of option B.
C) is less than the expected utility of option B.
D) could be either greater or less than the expected utility of option B.
A
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In the Keynesian model, suppose the Fed sets a target for the real interest rate. If the IS curve shifts to the left, and the Fed wants to keep output unchanged
A) taxes will increase. B) the money supply will decline. C) the real interest rate will decrease. D) taxes will decrease.
If the demand for a good is highly elastic, that good is likely to have:
A. few close complements. B. many close complements. C. few close substitutes. D. many close substitutes.
Jobs in rural areas generally pay lower wages than jobs in urban areas because there are limits to labor mobility
a. True b. False
Mild upward-slope of yield curve so expect _______ interest rates
Fill in the blank(s) with the appropriate word(s).