A risk-averse agent
A. only cares about expected payoff.
B. does not care about expected payoff.
C. cares about expected payoff as well as the variability of a payoff.
D. only cares about the variability of a payoff.
Answer: C
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Counter cyclical policies ________
A) increase the intensity of economic fluctuations B) lead to hyperinflation C) smooth the rate of growth of the economy over time D) lower output below its potential level
If 2009 is the reference base period, what is the price index for the CPI basket of goods for 2015 in the above table?
A) 97.3 B) 102.8 C) 128.0 D) zero because the price of Blu-rays fell and the price of water increased
Suppose that the demand for apples in Washington is elastic and the supply is inelastic. If the government of Washington passes a law prohibiting the use of synthetic pesticides that increases the marginal and average costs of producing apples, then:
a. the price of Washington State apples will decline. b. Washington will stop producing apples, and New York apple growers will benefit. c. apple growers will pass most of the increased costs on to consumers in the form of higher apple prices. d. apple growers will keep prices constant but reduce costs by advertising less. e. apple growers will bear most of the increased costs of regulation, and prices will increase only slightly.
The poverty line is higher than the welfare eligibility income in
A. no states. B. a few states. C. most states. D. all states.