If a person is risk neutral, then she
A) is indifferent about playing a fair game.
B) will pay a premium to avoid a fair game.
C) has a horizontal utility function.
D) has zero marginal utility of wealth.
A
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One way to overcome the problem of time inconsistency is to
a. legislate policy rules. b. grant policymakers independence.. c. appoint policy makers with credibility. d. both a and c. e. all of the above.
Find the size of the civilian labor force from the following data: frictional unemployment = 150, structural unemployment = 200, cyclical unemployment = 225, discouraged workers = 25, underemployed workers = 75, fully employed workers = 850, total population = 2,000
a. 1,425 b. 1,450 c. 1,500 d. 1,525 e. 2,000
Cross-subsidizationimplies that a loss from one product’s sales will be made up by the profit from another product’s sales.
Answer the following statement true (T) or false (F)
The typical shape of the long-run average cost curve is like
A) the letter "C." B) the letter "U." C) an inverse of the letter "V." D) a circle.