Consider the gamble inherent in looking for an apartment. If the expected value of going to see another apartment is zero, then
A. only risk-averse people will consider seeing another apartment.
B. both risk-averse and risk-neutral people will consider seeing another apartment.
C. risk-averse people will not consider seeing another apartment.
D. risk-neutral people will not consider seeing another apartment.
Answer: C
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Compared to the situation in which it sets a single price, a monopoly that price discriminates ________ its economic profit and ________ its output
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases E) increases; does not change
All of the following make the demand for labor more elastic EXCEPT
A) greater elasticity of demand for the final product. B) the longer the time period under consideration. C) the smaller the proportion of total costs accounted for by labor. D) the easier it is to substitute another input for labor.
Which of the following best describes efficiency in the demand and supply model?
a. The economy is receiving as much benefit as possible from its scarce resources and all the possible gains from trade have been achieved. b. The economy is receiving as much benefit as possible from its scarce resources but not achieving all the possible gains from trade. c. The economy is not receiving as much benefit as possible from its scarce resources but is getting all the possible gains from trade. d. The economy is not receiving as much benefit as possible from its scarce resources and not achieving all the possible gains from trade.
If we observe that every increase in income of $120 million generates an increase in consumption of $80 million, then the simple multiplier is
a. 2/3. b. 3/2. c. 2. d. 3. e. 8.