Risk-averse people cut their risks by:
a. diversifying their wealth into physical assets.
b. investing their wealth into similar kinds of assets.
c. investing their wealth only in risk-free assets.
d. diversifying their wealth into different assets.
D
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Suppose you had to find the effect of seatbelt rules on road accident fatalities. Would you choose to run a randomized experiment or would it make sense to use natural experiments here? Explain
What will be an ideal response?
Consider an economy made up of 100 people, 50 of whom hold jobs, 10 of whom are looking for work, and 15 of whom are retired. The unemployment rate is approximately
a. 10 percent b. 12 percent c. 17 percent d. 20 percent e. 25 percent
The United States payroll tax is progressive.
Answer the following statement true (T) or false (F)
The profit-maximizing level of output and the profit-maximizing price for an oligopolist cannot be calculated when we don't know
A) the type of barrier to entry that exists in the oligopolist's industry. B) the demand curve and the marginal revenue curve of the oligopolist. C) what the concentration ratio for the oligopolist's industry is. D) what the minimum efficient scale in the oligopolist's industry is.