A state lottery commission offers a new millionaire game - a one in a million chance to win one million dollars. If the price of a lottery ticket is $1.50, who would buy any?
a. Only risk-neutral individuals.
b. Only risk-preferring individuals.
c. Both risk-neutral and risk-preferring individuals.
d. Anyone, risk preferences would not matter.
b. Only risk-preferring individuals.
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Does the term "mandatory spending" mean that spending must go on forever?
A) Yes, Congress has no right to change these spending programs. B) Yes, the laws which authorized this spending cannot be changed. C) No, once appropriated, spending is for the life of the program only or until it changes. D) Yes, once appropriated, spending is indefinite.
As the federal funds rate changes, other interest rates tend to move in the same direction
Indicate whether the statement is true or false
Prohibiting the use of “dirty” fuels by industry is an example of
A. voluntarism. B. direct controls. C. taxes on emissions. D. the permit to pollute.
Which of the following is a term that is sometimes used to describe markets with low entry barriers and firms that are price searchers?
a. pure competition b. monopoly c. monopolistic competition d. oligopoly