Multiple Choice
Brenda starts a business for $150,000 that gives her a 50% chance of losing and a 50% chance of gaining an expected annual return of $75,000.John is content with a job that pays him $75,000 per year with near certainty;there is only about a 1% chance of losing his job each year.Suppose risk is on the horizontal axis and return on the vertical axis,Brenda's indifference curve for risk and return:
A) is flatter than John's.
B) is steeper than John's.
C) has the same slope as John's.
D) is horizontal.
Correct Answer:

Verified
Correct Answer:
Verified
Q65: Suppose consumption in year 2 (C<sub>2</sub>)is on
Q66: Being a member of the government-sponsored MediSave
Q67: A reduction in an individual's future income
Q68: Which of the following is true of
Q69: Phil and Jane,and their son Dylan,have $10,000
Q71: Consider the income and consumption of an
Q72: Figure 5-4 shows a family's preferences for
Q73: Figure 5-3 shows a family's preferences for
Q74: Describe the relationship among total utility,marginal utility,and
Q75: Use the following figure to answer the