If people are risk averse, then ?

Related Mcqs:

The amount today that would be needed, at prevailing interest rates, to produce a particular sum in the future is known as ?

A. future value B. fair value C. present value D. compound value E. beginning value...

JCB (Which makes agricultural and construction equipment) has the opportunity to purchase a new factory today that will provide them with a Rs50 million return four years from now If prevailing interest rates are 6 percent, what is the maximum that the project can cost for JCB to be willing to undertake the project ?

A. Rs 43,456,838 B. Rs 53,406,002 C. Rs 34,538,902 D. Rs 39,604,682...

If two countries start with the same real GDP/person and one country grows at 2 percent while the other grows at 4 percent ?

A. one country will always have 2 percent more real GDP/person than the other B. the standard of living in the country growing at 4 percent will start to accelerate away from the slower growing country due to compound growth C. the standard of living in the two countries will converge D. Next year the … If two countries start with the same real GDP/person and one country grows at 2 percent while the other grows at 4 percent ?Read...

An increase in the prevailing interest rate ?

A. increases the present value of future returns from investment and increases investment B. decreases the present value of future return from investment and decreases investment C. decreases the present value of future returns from investment and increase investment D. increases the present value of future returns from investment and decreases investment...

Which of the following is an example of moral hazard ?

A. After Gull buys fire insurance, he begins to smoke cigarettes in bed. B. None of these answers demonstrate moral hazard C. Mahmood has been feeling poorly lately so he seeks health insurance D. All of these answers demonstrate moral hazard...