Refer to Figure g. Lily's benefit function (dashed) is more concave than Millie's benefit function (dotted). Lily:
B. is less risk averse than Millie.
C. has a smaller risk premium than Millie.
D. has a larger certainty equivalent than Millie.
A. is more risk averse than Millie.
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Which of the following offers an example of structural unemployment?
a. The rise in unemployment for stable workers after the development of gasoline-powered automobiles and the resulting long-term decline in horse-and- buggy transportation. b. The rise in unemployment among farm workers after harvest. c. The unemployment associated with workers changing jobs. d. The increase in unemployment during recessions.
Points below the production possibilities frontier are inefficient because it is possible to make someone better off without making anyone else worse off.
Answer the following statement true (T) or false (F)