A fair coin is flipped. If it lands heads the person receives $1.00. If it lands tails, the person receives $11.00. If the person is not willing to pay $6.00 to take this gamble, they must be
a. risk-neutral.
b. risk-averse.
c. risk-preferring.
d. either risk-neutral or risk-preferring (i.e. not risk averse)
b. risk-averse.
Economics
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At a point on a production possibilities curve, opportunity cost of more capital goods today is
A) fewer capital goods in the future. B) fewer consumer goods in the future. C) fewer consumer goods today. D) more unemployed resources in the future.
Economics
What is the free-rider problem, and how is it related to public goods?
What will be an ideal response?
Economics