Which of the following properties can be associated with an indifference curve of a risk-averse investor?
a. Indifference curve for a risk-averse investor is a vertical line parallel to the variance axis.
b. Two indifference curves can intersect at the equilibrium combination of risk and return.
c. An indifference curve closer to the expected return axis gives a better utility than the one farther away.
d. Indifference curve for a risk-averse investor is always downward sloping.
C
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Dan and Dave are both college graduates. Dan is a patrolman and Dave is a detective in the same police precinct. While Dan's job is inherently more dangerous than Dave's, Dave passed a difficult exam to gain promotion to detective. Dave earns more than Dan because
a. Dave's job is less dangerous. b. of efficiency wages. c. of education as a signal. d. Dave has more human capital.
If all workers and all jobs were the same such that all workers were equally well suited for all jobs, then there would be no
a. cyclical unemployment. b. frictional unemployment. c. natural rate of unemployment. d. structural unemployment.