The risk premium is negative when tastes are risk averse.
Answer the following statement true (T) or false (F)
False
Rationale: The risk premium is positive when tastes are risk averse, negative when they are risk-loving.
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Efficiency in a market occurs when the production of the good is such that
A) marginal benefit exceeds marginal cost. B) marginal benefit equals marginal cost. C) marginal benefit is lower than marginal cost. D) the marginal cost stops increasing. E) marginal benefit exceeds marginal cost by the maximum amount possible.
Average variable costs:
A. always trend upward as output increases. B. always trend downward as output increases. C. decrease, then increase as output increases. D. increase, then decrease as output increases.
Economic growth occurs when
A. nominal GDP increases. B. GDP per capita in the short run increases. C. a nation's capacity to produce increases. D. there is a movement along the production possibility curve resulting in increased personal consumption expenditures.
Benjamin works as an economist for the federal government. Which of the following questions is he trying to answer as part of his job?
a. How can I communicate more effectively? b. What is the difference between artificial intelligence and emotional intelligence? c. How can government officials get themselves re-elected to office? d. What is the correlation between race and class? e. How do people use limited resources to try to satisfy unlimited wants?