Catherine is risk averse. When faced with a choice between a gamble and a certain level of wealth, she will
A) always prefer the gamble.
B) always prefer the certain level of wealth.
C) prefer the gamble if the expected utility from it is higher than the utility from the certain level of wealth.
D) prefer the certain level of wealth if the expected utility from the gamble is higher than the utility of the certain level of wealth.
C
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Indicate whether the statement is true or false
If Japan does not have a comparative advantage in producing rice, the consequences of adopting a Japanese policy of reducing or eliminating imports of rice into their country would include:
a. Japan will be able to consume a combination of rice and other goods' consumption beyond their domestic production possibilities curve. b. the real incomes of Japanese rice producers would rise, but the real incomes of Japanese rice consumers would fall. c. the real incomes of Japanese rice consumers would rise, but the real incomes of Japanese rice producers would fall. d. the price of rice in Japan will fall.