Which of the following games might a risk-averse person play?
a. a game where she has a 50 percent chance of winning $1 and a 50 percent chance of losing $1
b. a game where she has a 50 percent chance of winning $100 and a 50 percent chance of losing $100
c. a game where she has a 60 percent chance of winning $1 and a 40 percent chance of losing $1
d. a game where she has a 40 percent chance of winning $1 and a 60 percent chance of losing $1
c
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Joe has $50, which he spends on movies and pizza. If the price of a pizza falls, Joe can
A) consume more of both goods. B) consume more pizza only if he gives up some movies. C) consume more movies only if he gives up some pizza. D) consume more pizza only.
According to Professor Baotai Wang who examined the crowding out phenomenon inCanada between 1961-2000, as discussed in the Case in Point, government expenditures for health and education
A) increased human capital and encouraged private sector investment, leading to crowding in. B) did not increase the rate of return on private investment and therefore led to crowding out. C) increased human capital and generated strong supply-side effects. D) led to only small increases in human capital.