Taking actions that reduce risk A) raise your expected value. ...

[kshipps]

Taking actions that reduce risk
 
  A) raise your expected value.
  B) makes you less risk-averse.
  C) are impractical in most circumstances.
  D) change your utility function.

Question 2

Let the production function be q=ALaKb. The function exhibits increasing returns to scale if
 
  A) a + b = 1.
  B) a + b > 1.
  C) a + b < 1.
  D) Cannot be determined with the information given.

[moormoney]

Answer to Question 1

A

Answer to Question 2

B