The above figure shows Bob's utility function. He currently has $100 of wealth, but there is a 50% chance that it could all be stolen. Bob's expected wealth is
A) $0.
B) $50.
C) $75.
D) $100.
B
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If the price of milk increased by 5 percent because of an increase in the demand for milk, and the quantity of milk supplied increased by 7 percent
A) the supply curve of milk has shifted rightward. B) the price elasticity of supply of milk is greater than one. C) milk is more of a luxury than a necessity. D) milk is more of a necessity than a luxury.
As a result of an increase in a product's price: a. product supply increases
b. product supply decreases. c. product supply does not change, but quantity supplied increases. d. the impact on product supply is uncertain. Economic theory has no answer to this question.
Which of the following is true about a Sweezy oligopoly?
A. The marginal revenue function has an upward "jump" or "discontinuity." B. The marginal cost function has an upward "jump" or "discontinuity." C. The marginal revenue function has a downward "jump" or "discontinuity." D. The marginal cost function has a downward "jump" or "discontinuity."
Which of the following is most accurate about poverty in the United States as measured by the poverty line?
A. Poverty has steadily declined since the 1950s. B. Poverty declined through the 1950s and 1960s, but on net has not improved since then. C. Poverty, on net, has significantly worsened over the last 70 years. D. The greatest reductions in poverty occurred in the 1980s, but on net have not improved significantly since then.