Suppose a bet is placed on the outcome of the flip of a coin – if the coin comes up heads, you get $25 and if it turns up tails, you lose $25 . If you accepted this bet, does it imply that you are risk averse, risk neutral, or risk loving?
What will be an ideal response?
The expected value of this bet is zero. If you accepted this bet, it would imply that you are either risk neutral or a risk-seeker. A risk-neutral person would be indifferent to the bet while a risk-averse person would decline the bet.
Economics
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A price ceiling refers to ________
A) the lowest price that a producer is willing to accept for a good B) the highest price that a consumer is willing to pay for a good C) the lower limit on the price of a good D) the upper limit on the price of a good
Economics
Consider the following statement: "Real GDP and potential GDP are always equal." Is this statement true or false? Explain your answer
What will be an ideal response?
Economics