The law of large numbers:
A) can be used to explain why some people are risk averse and others are risk neutral or risk loving.
B) can be used to explain why some people choose to self-insure against random, single and largely unpredictable events.
C) states that large amounts of information are often preferred to small amounts of information.
D) states that the average outcome of a large number of similar events can often be predicted.
D
You might also like to view...
Refer to Budget Lines. Which of the following changes is consistent with the situation shown in the diagram?
a. The consumer's income fell.
b. The relative price of good X in terms of good Y fell.
c. The absolute price of good X rose, and the absolute price of good Y fell.
d. The absolute price of both goods rose, with the price of good X rising by the higher percentage.
In 2008, the government bought $2,883 billion worth of goods and services that were part of GDP, representing about _________ of the total
a. half b. a third c. a fifth d. a quarter e. two fifths.
Portugal has an absolute advantage in which product?
If consumer tastes for electric cars increase over the next 10 years, we will see an increase in the demand for electric cars, higher electric car prices, and an increase in the equilibrium quantity of electric cars.
a. true b. false