The following is not an example of risk aversion
a. you don't lock your garage when you have expensive workshop tools
b. you are more careful when you buy a more expensive car
c. Individuals tend to gamble more with their money when the future is certain
d. you only go swimming when the lifeguard is on duty
a
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When the price of bananas rises 2 percent, the quantity demanded of peanut butter falls 4 percent
a. What is the cross elasticity of demand between these two goods? b. How are these goods related? c. If the price of bananas rises, how will that affect the demand curve for peanut butter?
Investments with _____ risk usually carry a _____ return
a. higher; lower b. lower; higher c. zero; high d. higher; higher
The federal government's budget been in deficit every year since 1959
a. True b. False
"Trade restrictions will stop foreign imports, which will increase American employment and protect American jobs." Most economists realize this argument is wrong. Can you explain why?