If Pearl is a risk averse, then
A) expected utility has nothing to do with her choices.
B) she does not have diminishing marginal utility of wealth.
C) she will not buy insurance.
D) risk is costly to her.
D
Economics
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Explain what is meant by the term ceteris paribus. Why is this concept often used in economic models?
What will be an ideal response?
Economics
If at a given exchange rate foreign citizens want to buy fewer U.S bonds, then the
a. supply of dollars in the market for foreign-currency exchange shifts right. b. supply of dollars in the market for foreign-currency exchange shifts left. c. demand for dollars in the market for foreign-currency exchange shifts right. d. demand for dollars in the market for foreign-currency exchange shifts left.
Economics