A risk-neutral consumer
A. will always refuse a fair gamble.
B. avoids all risks.
C. will always accept a fair gamble.
D. is indifferent between accepting and refusing a fair gamble.
Answer: D
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If the U.S. government changes its policy toward Cuba by allowing U.S. firms to export their goods to Cuba, the
a. Cuban aggregate expenditure curve will shift upward and the equilibrium level of national income in the U.S. will decrease b. Cuban aggregate expenditure curve will shift downward and the equilibrium level of national income in Cuba will decrease c. Cuban aggregate expenditure curve will shift upward and the equilibrium level of national income in Cuba will increase d. U.S. aggregate expenditure curve will shift downward and the equilibrium level of national income in the U.S. will decrease e. U.S. aggregate expenditure curve will shift upward and the equilibrium level of national income in the U.S. will increase
Refer to the budget line shown in the diagram. If the consumer's money income is $20, which of the following combinations of goods is unattainable?
A. 4 units of C and 6 units of D.
B. 5 units of C and no units of D.
C. 1 unit of C and 8 units of D.
D. 2 units of C and 6 units of D.
If the Fed wants to fight unemployment, it would ______________
Fill in the blank(s) with the appropriate word.
Which of the following types of countries has experienced increasing inequality in recent decades?
A. Poor countries B. Countries with low economic growth C. Rich countries D. All of these have experienced increasing inequality.