Jessica must choose option A or option B. Option A gives her $10,000 for sure. Option B gives her $5,000 if a fair coin toss shows heads and $15,000 if it shows tails. If Jessica is risk averse her utility of wealth curve becomes
A) flatter as her wealth increases and she will choose option A.
B) flatter as her wealth increases and she will choose option B.
C) steeper as her wealth increases and she will choose option A.
D) steeper as her wealth increases and she will choose option B.
A
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Using the table above, the Current Population Survey classifies the group of individuals obtained by adding groups 5 and 6 as
A) the labor force. B) employed. C) discouraged workers. D) unemployed. E) the working age population.
On average, middle-aged people tend to have higher incomes than younger or older people do because: a. they receive more money from the government than younger or older people do. b. they are at an age where their productivity is at its peak
c. they participate in the labor force to a lesser extent than do the young or the old. d. they are subject to lower rates of taxation than are younger or older workers.
The law of diminishing marginal product is responsible for
A) economies of scale. B) constant returns to scale. C) diseconomies of scale. D) none of the long-run relationships.
Which of the following is not an advantage of a pollution tax?
A. It allows firms to equate its marginal abatement cost and the marginal benefit (tax savings). B. It allows a low-cost firm to abate more. C. It provides firms an incentive to invest in pollution abatement technologies. D. It allows us to predict the total volume of pollution that will be discharged.