John's utility of wealth curve is shown in the above figure. He currently has wealth of $20,000. If there is a 10 percent chance of losing all his wealth, what is the value of insurance against this loss?
A) $0
B) $2,000
C) $3,000
D) $17,000
C
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Monetizing the deficit contributes to the inflationary pressures that are already present in the economy.
Answer the following statement true (T) or false (F)
A VAR with five variables, 4 lags and constant terms for each equation will have a total of
A) 21 coefficients. B) 100 coefficients. C) 105 coefficients. D) 84 coefficients.
Concord Piano Company has experienced a sustained pattern of losses because fewer people are buying pianos for their homes. In response, the owner of Concord has reduced the number of pianos it manufactures. Which of the following is suggested by the actions of Concord?
a. Concord is reducing its marginal costs. b. Concord is preparing to exit the market. c. Concord has reached the shutdown point. d. Concord is evaluating its allocative efficiency.
The table below shows the export and import values of automobiles, pharmaceuticals, and clothing in Country A and County B. Country AExports ($Billions)Imports ($Billions)Automobiles2040Pharmaceuticals3030Clothing400Country BExports ($Billions)Imports ($Billions)Automobiles020Pharmaceuticals4040Clothing4535 The weighted average of the intra-industry trade (IIT) shares in Country B's trade in automobiles, pharmaceuticals, and clothing is
A. 0.833. B. 2.000. C. 0.417. D. 0.895.