Which of the following games might a risk-averse person play?
a. a game where she has a 50 percent chance of winning $1 and a 50 percent chance of losing $1
b. a game where she has a 50 percent chance of winning $100 and a 50 percent chance of losing $100
c. a game where she has a 60 percent chance of winning $1 and a 40 percent chance of losing $1
d. a game where she has a 40 percent chance of winning $1 and a 60 percent chance of losing $1
c
You might also like to view...
Eliza consumes 12 cappuccinos and 8 apple turnovers per week. The price of a cappuccino is $4 each and apple turnovers are $1 each
a. What is the amount of income allocated to cappuccino and apple turnover consumption? b. What is the price ratio (the price of cappuccinos relative to the price of apple turnovers)? c. Explain the meaning of the price ratio you computed. d. If Eliza maximize utility, what is the ratio of the marginal utility of cappuccinos to the marginal utility of apple turnovers? e. If the price of apple turnovers falls, will Eliza consume more apple turnovers, fewer apple turnovers, or the same amount of apple turnovers? Explain your answer using the rule of equal marginal utility per dollar.
Financial disintermediation occurs when:
a. Businesses no longer borrow directly in the bond market. b. Businesses no longer issue stock. c. Individuals no longer trade securities in the secondary market. d. Individuals withdraw funds from financial intermediaries and invest them elsewhere. e. All of the above.
When considering her budget, the highest indifference curve that a consumer can reach is the
a. one that is tangent to the budget constraint. b. indifference curve farthest from the origin c. indifference curve that intersects the budget constraint in at least two places. d. None of the above is correct.
Economic growth can be shown by ____________________ production possibilities curve.
A. an outward shift of the B. an inward shift of the C. a movement from one point to another along the D. a movement to a point inside the