Question 1

An individual with a constant marginal utility of income will be

Accepted Answer

A) risk averse. 
B) risk neutral. 
C) risk loving. 
D) insufficient information for a decision 
A) risk averse. 
B) risk neutral. 
C) risk loving. 
D) insufficient information for a decision

Question 2

The indifference curve between expected return and the standard deviation of return for a risk-averse investor

Accepted Answer

A) is downward-sloping. 
B) is upward-sloping. 
C) is horizontal. 
D) is vertical. 
E) can take any shape. 
A) is downward-sloping. 
B) is upward-sloping. 
C) is horizontal. 
D) is vertical. 
E) can take any shape.

Question 3

The budget line in portfolio analysis shows that

Accepted Answer

A) the expected return on a portfolio increases as the standard deviation of that return increases. 
B) the expected return on a portfolio increases as the standard deviation of that return decreases. 
C) the expected return on a portfolio is constant. 
D) the standard deviation of a portfolio is constant. 
E) a riskless portfolio will earn a zero return. 
A) the expected return on a portfolio increases as the standard deviation of that return increases. 
B) the expected return on a portfolio increases as the standard deviation of that return decreases. 
C) the expected return on a portfolio is constant. 
D) the standard deviation of a portfolio is constant. 
E) a riskless portfolio will earn a zero return.

Question 4

The information in the table below describes choices for a new doctor.The outcomes represent different macroeconomic environments,which the individual cannot predict.
Table 5.3  
-Refer to Table 5.3.Rank the doctor's job options in expected income order,highest first.

Accepted Answer

A) Work for HMO,open own practice,do research. 
B) Work for HMO,do research,open own practice. 
C) Do research,open own practice,work for HMO. 
D) Do research,work for HMO,open own practice. 
E) Open own practice,work for HMO,do research. 
A) Work for HMO,open own practice,do research. 
B) Work for HMO,do research,open own practice. 
C) Do research,open own practice,work for HMO. 
D) Do research,work for HMO,open own practice. 
E) Open own practice,work for HMO,do research.

An individual with a constant marginal utility of income will be

The indifference curve between expected return and the standard deviation of return for a risk-averse investor

The budget line in portfolio analysis shows that

The information in the table below describes choices for a new doctor.The outcomes represent different macroeconomic environments,which the individual cannot predict. Table 5.3 -Refer to Table 5.3.Rank the doctor's job options in expected income order,highest first.

Preliminaries

The Basics of Supply and Demand

Consumer Behavior

Individual and Market Demand

Production

The Cost of Production

Profit Maximization and Competitive Supply

The Analysis of Competitive Markets

Market Power: Monopoly and Monopsony

Pricing With Market Power

Monopolistic Competition and Oligopoly

Game Theory and Competitive Strategy

Markets for Factor Inputs

Investment,time and Capital Markets

General Equilibrium and Economic Efficiency 1-83

Markets With Asymmetric Information

Externalities and Public Goods

Filters

Exam 5: Uncertainty and Consumer Behavior

An individual with a constant marginal utility of income will be

The indifference curve between expected return and the standard deviation of return for a risk-averse investor

The budget line in portfolio analysis shows that

The information in the table below describes choices for a new doctor.The outcomes represent different macroeconomic environments,which the individual cannot predict. Table 5.3 -Refer to Table 5.3.Rank the doctor's job options in expected income order,highest first.

Preliminaries

The Basics of Supply and Demand

Consumer Behavior

Individual and Market Demand

Production

The Cost of Production

Profit Maximization and Competitive Supply

The Analysis of Competitive Markets

Market Power: Monopoly and Monopsony

Pricing With Market Power

Monopolistic Competition and Oligopoly

Game Theory and Competitive Strategy

Markets for Factor Inputs

Investment,time and Capital Markets

General Equilibrium and Economic Efficiency 1-83

Markets With Asymmetric Information

Externalities and Public Goods

Filters