Assume that Janet is risk-averse. Which of the following bets is she more likely to accept, depending on the degree of risk aversion?
A. win $20 one-fourth of the times, win $10 one-fourth of the times, and lose $20 one-fourth of the times
B. win $20 one-fourth of the times, win $10 one-half of the times, and lose $20 one-fourth of the times
C. win $40 one-fourth of the times, break even one-half of the times, and lose $40 one-fourth of the times
D. win $40 one-fourth of the times, win $10 one-half of the times, and lose $40 one-fourth of the times
Answer: B
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a. be willing and able to produce less jewelry than before at each possible price. b. be willing and able to produce more jewelry than before at each possible price. c. face a greater demand for your jewelry. d. face a weaker demand for your jewelry.
The higher the price of medical care in general, the lower the ____________________________ medical care and the ______________________ specific items that make up medical care (such as, x-rays)
A) quantity demanded of; higher the demand for B) demand for; higher the demand for C) quantity demanded of; lower the demand for D) demand for; higher the quantity demanded of
The main problem with using groundwater to increase water supplies is that
a. Groundwater tends to be contaminated with pesticides b. Groundwater is normally found in countries that already have sufficient supplies c. Groundwater aquifers are being rapidly depleted d. Groundwater tends to be too salty e. Groundwater tends to be too expensive
If the price of train rides is 1 and the price of food is 10, and the MRS of food for train rides expressed by Karl is 5, is Karl a utility maximizer? How do you know? If Karl is not maximizing, what should he do to improve his situation?
What will be an ideal response?