Author Question: The indifference curves of two investors are plotted against a single budget line. Indifference ... (Read 223 times)

tuffie

  • Hero Member
  • *****
  • Posts: 534
The indifference curves of two investors are plotted against a single budget line. Indifference curve A is shown as tangent to the budget line at a point to the left of indifference curve B's tangency to the same line.
 
  A) Investors A and B will hold the same portfolio.
  B) Investors A and B will have different portfolios of the same standard deviation.
  C) Investors A and B will have different portfolios of the same rate of return.
  D) Investors A and B will have different portfolios but have the same level of risk aversion.
  E) Investor A will expect to earn a lower rate of return than investor B.

Question 2

The optimum level of pollution emissions
 
  A) is zero.
  B) occurs where the marginal external benefit is zero.
  C) occurs where no damage to the environment is being done.
  D) occurs where the marginal external benefit equals the marginal external cost.
  E) occurs where the marginal external cost equals the marginal cost of abatement.



Meganchabluk

  • Sr. Member
  • ****
  • Posts: 301
Answer to Question 1

E

Answer to Question 2

E



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question


 

Did you know?

In most cases, kidneys can recover from almost complete loss of function, such as in acute kidney (renal) failure.

Did you know?

Thyroid conditions may make getting pregnant impossible.

Did you know?

Approximately one in four people diagnosed with diabetes will develop foot problems. Of these, about one-third will require lower extremity amputation.

Did you know?

Increased intake of vitamin D has been shown to reduce fractures up to 25% in older people.

Did you know?

Stevens-Johnson syndrome and Toxic Epidermal Necrolysis syndrome are life-threatening reactions that can result in death. Complications include permanent blindness, dry-eye syndrome, lung damage, photophobia, asthma, chronic obstructive pulmonary disease, permanent loss of nail beds, scarring of mucous membranes, arthritis, and chronic fatigue syndrome. Many patients' pores scar shut, causing them to retain heat.

For a complete list of videos, visit our video library