A point lying beyond the utilities possibilities frontier is

If the number of employed workers in an economy is 8 million, the number of potential workers in the economy is 12 million, and the number of adults not in the labor force is 1 million, the number of unemployed people in the economy will equal:

A) 3 million. B) 5 million. C) 1 million. D) 7 million.

Marylou, whose utility of wealth curve is shown in the figure above, faces two options. Option A yields her $200 for sure. Option B has a 0.4 probability of yielding $100 and a 0.6 probability of yielding $300. Marylou

A) picks option A. B) picks option B. C) is indifferent between option A and option B. D) needs more information to make a choice.