A risk-averse individual prefers
A) the utility of expected income of a risky gamble to the expected utility of income of the same risky gamble.
B) the expected utility of income of a risky gamble to the utility of expected income of the same risky gamble.
C) outcomes with 50-50 odds to those with more divergent probabilities, no matter what the dollar outcomes.
D) outcomes with higher probabilities assigned to more favorable outcomes, no matter what the outcomes are.
E) outcomes with highly divergent probabilities so that one of the outcomes is almost certain.
A
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Determine the output expansion path (equation) for a Cobb-Douglas production function f(L,K) = 10LaK1-a. How does the shape of the output expansion path change as "a" changes?
What will be an ideal response?
Which of the following could cause the supply curve of labor to shift to the right?
a. an increase in wealth b. a decrease in population c. a decrease in wages d. an increase in employment opportunities e. an increase in the wage rate