A risk-averse investor will decide whether or not to invest by determining if the expected value of the investment is positive
Indicate whether the statement is true or false
False. A risk-averse investor will examine the expected utility from investing. If the expected utility from investing is larger than the expected utility from not investing the investment will be made.
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The figure above shows a monopoly's total revenue and total cost curves. The monopoly's economic profit is positive if it produces between
A) 0 and 5 units. B) 0 and 15 units. C) 0 and 20 units. D) 5 and 20 units.
Import quotas are
a. methods for reducing imports by limiting the quantity of goods that can enter the country each year. b. voluntary agreements by exporting countries to limit sales in a foreign country. c. subsidies to foreign producers to encourage them to trade. d. None of these.
An upward-sloping supply curve of labor implies that
a. any quantity of workers can be hired at the same wage rate b. a higher wage rate is required to attract more laborers c. there is an excess supply of labor in the labor market d. the total labor cost curve is horizontal e. the marginal physical product curve of labor must also be upward sloping
According to the open-economy macroeconomic model, a decrease in the U.S. government budget deficit increases U.S. net capital outflow, causes the real exchange rate of the dollar to depreciate, and increases U.S. net exports
a. True b. False Indicate whether the statement is true or false