The following is not an example of risk aversion
a. you don't lock your garage when you have expensive workshop tools
b. you are more careful when you buy a more expensive car
c. Individuals tend to gamble more with their money when the future is certain
d. you only go swimming when the lifeguard is on duty
a
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The IMF lends at low interest rates and without preconditions
Indicate whether the statement is true or false
Bob and Bill can make 16 toys each if they devote 8 working hours in a day. Further, Bob can repair 4 cars and Bill can repair 2 cars, if they devote 8 working hours in a day. When these two individuals engage in trade, it would be advantageous for both if:
a. Bob specializes in the production of toys and Bill specializes in car repairing. b. Bob specializes in car repairing and Bill specializes in the production of toys. c. they specialize only in car repairing. d. they specialize only in the production of toys. e. they distribute their working hours evenly between the production of two goods.