More risk-averse people will:
a. hold fewer risky assets because marginal utility is rapidly diminishing.
b. hold fewer risky assets because marginal utility is greater.
c. hold fewer risky assets because rates of return are more uncertain.
d. hold fewer risky assets because marginal utility is negative.
a
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Relative scarcities are indicated by
A) supply and demand being out of equilibrium. B) surpluses. C) excess demand and excess supply. D) relative prices.
A sudden increase in immigration would be considered a(n):
A. interest-rate shock. B. short-run supply shock. C. long-run supply shock. D. A change in immigration would not affect any of these.
A waitress brings a loaf of bread without charge when you sit down in a restaurant. This loaf of bread is
A. an economic good because the bread is a scarce resource, even if it is free to you. B. a bad because there is no price charged for the bread. C. a good, but not an economic good because there is no price charged for the bread. D. a service because the waitress carried it instead of making it.
Refer to the information provided in Figure 2.1 below for the economy of Macroland to answer the question(s) that follow.
Figure 2.1Refer to Figure 2.1. If Macroland's economy is at Point A, it could produce more capital goods
A. without sacrificing any consumer goods. B. only with additional resources. C. only by sacrificing some consumer goods. D. only with technological improvements.