Rahul has a concave utility function. Therefore, if there are two choices he will pick the ________ if ________ expected value
A) fair bet; both have the same
B) less risky choice;both have the same
C) more risky choice; both have the same
D) less risky choice; it has a lower
B
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Money is a medium of exchange in that
A) money is generally accepted for buying and selling goods and services. B) currency may be exchanged for gold at any national bank. C) other assets may be better or worse in facilitating exchange than money. D) it must maintain most of its value over time.
Suppose a Canadian investor buys a one-year U.S. government bond that pays 7 percent interest. If the U.S. dollar appreciates 4 percent against the Canadian dollar during the year, what must be the yield on a comparable Canadian government bond for interest rate parity to hold?
a. 3 percent b. 4 percent c. 7 percent d. 10 percent e. 11 percent
The average total cost curve and the average variable cost curve grow closer as output increases because
a. the marginal cost of production intersects these curves at their minimum points b. in the long run all costs are variable c. the cost of labor dominates the cost of raw material inputs at high levels of output d. the total variable costs are constant e. the average fixed cost decreases as output increases
Briefly review the history of antitrust legislation in the United States