Stan, who is risk averse, can invest in project A or project B. Project A returns $3,000 with probability 1/2 and $9,000 with probability 1/2. Project B returns nothing with probability 1/2 and $12,000 with probability 1/2. For Stan, project A has
A) greater expected wealth and greater expected utility than project B.
B) lower expected wealth and lower expected utility than project B.
C) the same expected wealth and the same expected utility as project B.
D) the same expected wealth but higher expected utility than project B.
D
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Briefly describe how the Bretton Woods system operated
What will be an ideal response?
The currency created by the European Monetary Union, for which notes and coins became available in 2002, is the
A) ECU. B) euro. C) EMU. D) pound.
The theory of economic rent can be used to explain high incomes received by movie stars and athletes
a. True b. False Indicate whether the statement is true or false
If one subtracts the amount of bonds held by agencies of the federal government and the Federal Reserve from the national debt, what remains is known as the
a. external debt. b. privately held government debt. c. trade deficit. d. budget deficit.