With regards to an investment project, which of the following is TRUE?
A) A risk-neutral individual is more likely to invest than a risk-averse individual.
B) A risk-neutral individual is more likely to invest than a risk-loving individual.
C) A risk-neutral individual is less likely to invest than a risk-averse individual.
D) Not enough information is given.
A
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Savings are generated whenever:
A. prices are rising. B. current spending exceeds current income. C. current income exceeds current spending. D. real GDP exceeds nominal GDP.
Mexico and the members of OPEC produce crude oil. Realizing that it would be in their best interests to form an agreement on production goals, a meeting is arranged and an informal, verbal agreement is reached. If both Mexico and OPEC abide by the agreement, then OPEC's profit will be $200 million and Mexico's profit will be $100 million. If both Mexico and OPEC cheat on the agreement, then OPEC's profit will be $175 million and Mexico's profit will be $80 million. If only OPEC cheats, then OPEC's profit will be $185 million, and Mexico's profit will be $60 million. If only Mexico cheats, then Mexico's profit will be $110 million, and OPEC's profit will be $150 million.Which of the following statements is correct?
A. Mexico does not have dominant strategy. B. Mexico does not have a dominated strategy. C. Mexico's dominant strategy is to abide by the agreement. D. Mexico's dominant strategy is to cheat on the agreement.