Author Question: The indifference curves of two investors are plotted against a single budget line. Indifference ... (Read 296 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?

Between 1999 and 2012, American adults with high total cholesterol decreased from 18.3% to 12.9%

Did you know?

The longest a person has survived after a heart transplant is 24 years.

Did you know?

It is widely believed that giving a daily oral dose of aspirin to heart attack patients improves their chances of survival because the aspirin blocks the formation of new blood clots.

Did you know?

According to the National Institute of Environmental Health Sciences, lung disease is the third leading killer in the United States, responsible for one in seven deaths. It is the leading cause of death among infants under the age of one year.

Did you know?

Oxytocin is recommended only for pregnancies that have a medical reason for inducing labor (such as eclampsia) and is not recommended for elective procedures or for making the birthing process more convenient.

For a complete list of videos, visit our video library