Dana's utility of wealth is 65 units at $3,000, 80 units at $5,000, and 95 units at $9,000. Starting from zero wealth, he must choose between options A and B. Option A gives him $5,000 for sure
Option B gives him $3,000 with probability 0.5 or $9,000 with probability 0.5. Dana will
A) choose option A.
B) choose option B.
C) be indifferent between option A and option B because they have the same risk.
D) be indifferent between option A and option B because they have the same expected utility.
D
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The unemployment rate in the United States is typically lower than in Western Europe because the United States has tougher requirements for the unemployed to receive government payments
Indicate whether the statement is true or false
Is the distribution of income across different countries in the world equitable? In other words, do all countries share the world's wealth equally?
What will be an ideal response?
If the MPS is 0.1 and the income tax rate is 0.33 the multiplier, k, is approximately
A) 2.5. B) 2.0. C) 10. D) 3.
Studies show that __________ households tend to save more of their income than others, and also show that ____________ households save more out of tax cuts than others do.
A. richer; poorer B. richer; richer C. poorer; richer D. poorer; poorer