The Arrow-Pratt measure of risk aversion is
A) negative if a person is risk averse.
B) greater than one if a person is risk averse.
C) negative if a person is risk loving.
D) None of the above.
C
Economics
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The phenomenon that some consumers pay a higher interest rate when they borrow than the interest rate they receive when they lend is best described as an example of
A) irrational behavior. B) a credit market imperfection. C) a vast banking conspiracy. D) the burden of public debt.
Economics
Refer to the following graph.
Given a tax of t on suppliers, revenue collected is:
A. A, B, C. Suppliers pay A and B. Consumers pay C. B. A, B, C. Suppliers pay B and C. Consumers pay A. C. A and B. Suppliers pay A. Consumers pay B. D. A and B. Suppliers pay B. Consumers pay A.
Economics