Before the Great Depression, federal deficits occurred primarily during wartime

The less the bend (or arc), or more linear the utility function is, the ________ risk averse the person is.

Fill in the blank(s) with the appropriate word(s).

Suppose a technological improvement increases the productivity of a firm's capital and, simultaneously, its workers' union negotiates a wage increase. We can predict that:

A. the firm will use relatively more capital and relatively less labor. B. the firm will use relatively more labor and relatively less capital. C. inputs of capital and labor will be unchanged. D. the firm's equilibrium output will necessarily increase.