A person with a diminishing marginal utility of income
A) will be risk averse.
B) will be risk neutral.
C) will be risk loving.
D) cannot decide without more information
A
You might also like to view...
Which of the following is an example of the bequest motive for saving?
A. Pat puts $400 per month in his 401(k) retirement account. B. Gerry and Terry put $2,000,000 in a trust fund that will go to their children when they die. C. Jordan sets aside $200 per month in case she has to pay for a new roof for her house. D. Chris keeps $15,000 in a money market account to pay expenses in case he loses his job.
Use the following graphs of production possibilities curves to answer the next question.
Suppose the world economy is composed of just two countries: Italy and Greece. Each can produce steel or chemicals, but at the different levels of economic efficiency shown in the graphs. It can be deduced that
A. Greece has a comparative advantage in chemicals. B. it is more costly in terms of resources to produce steel in Italy. C. Greece has the absolute advantage in both products. D. Italy has a comparative advantage in chemicals.
According to the quantity theory of money, increases in the money supply lead to
A) decreases in nominal Gross Domestic Product (GDP). B) increases in the price level. C) decreases in the price level. D) increases in taxes.
For about the last 45 years, federal taxes have remained relatively constant as a percentage of GDP
a. True b. False Indicate whether the statement is true or false