If a corporation goes bankrupt, who among the following has first claim on the firm's assets?

Risk aversion implies that

A) individuals will not take on risk. B) investors must be compensated for about half of the risk they take on. C) investors must be compensated for the risk they take on. D) None of the above.

A waitress brings a free glass of wine when you sit down in a restaurant. This glass of wine is

A) a service because the waitress carried it instead of making it. B) a good, but not an economic good because there is no price charged for the wine. C) a nongood because there is no price charged for the wine. D) an economic good because wine is produced with scarce resources, even if it is free to you.