Which of the following evidence does not support the expected utility theory?
A) People assign disproportionately high weights to rare events.
B) Risk-averse people do not engage in fair bets.
C) Risk-loving people do not purchase insurance policies.
D) Risk-neutral people engage in fair bets.
A
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The "velocity of circulation" refers to the
A) average speed with which the Fed increases or decreases the quantity of money. B) ratio between the quantity of money and the price level. C) average number of times in a year each dollar is used to buy goods and services. D) average number of times a dollar is deposited and withdrawn from a bank account. E) average speed with which the nominal interest rate changes when the inflation rate changes.
Involuntary part-time workers are workers who
A) work less than 35 hours but would like to work full time. B) work more than 35 hours but would like to work less than 35 hours. C) work have lost their jobs within the last four weeks and are seeking another job. D) work less than 35 hours by choice. E) have withdrawn from the labor market.
In developing economies, national saving is often ________ relative to developed economies
A) high B) the same C) hard to tell D) low E) low for the very poor countries and high for the more developed
Julia prepares tax returns and does bookkeeping. Last year her revenues from the tax and bookkeeping business were $150,000 . and her expenses for the business were $15,000 . When she started her tax and bookkeeping business, Julia gave up her supplemental job doing in-home pet sitting. She used to earn $10,000 per year from pet sitting. Assume that she incurred no costs for her pet sitting
business. Julia's accounting profits are a. $160,000. b. $150,000. c. $135,000. d. $125,000.