Refer to Figure g. Lily's benefit function (dashed) is more concave than Millie's (dotted) in Figure g. Millie:
A. is more risk averse than Lily.
B. is less risk averse than Lily.
C. has a larger risk premium than Lily.
D. has a lower certainty equivalent than Lily.
B. is less risk averse than Lily.
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Refer to Table 2.3. Nominal GDP in 2007 is
A) $320.63. B) $490.00. C) $568.00. D) $1282.50.
The analytical framework in which two or more individuals, companies, or nations compete for certain payoffs that depend on the strategy that others employ is
A) game theory. B) opportunistic behavior. C) the dominant equilibrium. D) the tit-for-tat equilibrium.
Contractionary fiscal policy consists of:
a. increased government purchases and increased taxes. b. decreased government purchases and decreased taxes. c. decreased government purchases and increased taxes. d. increased government purchases and decreased taxes.
Historical note: When DuPont was charged with monopoly control of the cellophane market, it responded by arguing that the relevant market was flexible wrapping materials and that they had no monopoly control of that market. That argument
a. won the day so that it was found not guilty of monopolizing its market b. was rejected by the Supreme Court and DuPont paid triple damages to its cellophane competitors c. was rejected by the court system and DuPont was ordered to sell off 50 percent of its cellophane production facilities d. never made it to the appeals court because DuPont settled out of court which is why they are not in the cellophane market today e. was rejected because, upon inspection, it controlled 90 percent of flexible wrapping materials as well