The theory of expected utility theory
A) predicts all actions involving uncertainty.
B) predicts no actions involving uncertainty.
C) predicts some, but not all, actions involving uncertainty.
D) predicts only one in three actions involving uncertainty.
C
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Refer to the figure below. Player A can infer that Player B will:
A. Player A cannot infer anything about what Player B will do given this matrix. B. choose Right. C. choose Left when A chooses Up and choose Right when A chooses Down. D. choose Left.
Because of diminishing marginal productivity
A) the labor supply curve is not vertical. B) nominal wages are sticky in a downward direction. C) the labor demand curve is negatively sloped. D) households save only a small share of their income.
The sale of stocks
a. and bonds to raise money is called debt finance. b. and bonds to raise money is called equity finance. c. to raise money is called debt finance, while the sale of bonds to raise funds is called equity finance. d. to raise money is called equity finance, while the sale of bonds to raise funds is called debt finance.
Which of the following shifts aggregate demand to the left?
a. an increase in the price level. b. households decide to save a larger fraction of their income. c. an increase in net exports. d. Congress passes a new investment tax credit.