What is the difference between the utility function of a risk averse person and a risk neutral person
The utility function of a risk averse person is an upward rising curve concave to the wealth axis. The utility function of a risk neutral person is an upward sloping straight line.
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At the start of the Civil War, the population in the U.S. was about half that of the United Kingdom
Indicate whether the statement is true or false
What is marginal factor cost? How is it related to the supply curve of an input?
What will be an ideal response?
Suppose the required reserve ratio is 0.2 and the Fed buys $100,000 in government securities from Big Bank. The commercial banking system creates _____ as a result of this initial injection by the Fed
a. $1,000,000 b. $500,000 c. $100,000 d. $80,000 e. $200,000
If an economist recommends that the government reduce the tax rate in order to increase tax revenues (based on the Laffer curve), she is implicitly assuming that the economy is currently operating at a point
A) inside the Laffer curve. B) outside the Laffer curve. C) on the upward-sloping portion of the Laffer curve. D) on the downward-sloping portion of the Laffer curve. E) where tax revenues are maximized.