Evaluating risk requires that:
A. we consider uncertain costs or benefits of an event or choice.
B. we think about different possible outcomes.
C. we accept that our best guess about future costs and benefits could be wrong.
D. All of these statements are true.
Answer: D
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Consider a market for used cars. Suppose there are only two kinds of cars: lemons and good cars. A lemon is worth $1,500 both to its current owner and to anyone who buys it. A good car is worth $6,000 to its current and potential owners
Buyers can't tell whether a car is a lemon until after they have bought the car. What do economists call the problem that buyers of used cars face? What kind of cars (lemons, good cars, or both) are traded? Explain and substantiate your answer.
Savings accounts have specific maturity dates
a. True b. False Indicate whether the statement is true or false