Catherine is risk-averse. When faced with a choice between a gamble and a certain level of wealth she will
A) always prefer the gamble.
B) always prefer the certain level of wealth.
C) prefer the gamble if the expected utility from it is higher than the utility from the certain level of wealth.
D) prefer the certain level of wealth if the expected utility from the gamble is higher than the utility of the certain level of wealth.
Question 2
Producer groups tend to lobby for
A) price floors.
B) price ceilings.
C) quantity quotas.
D) taxes.
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