1. If a person is not fully insured against a potential negative shock, A. Her ex-post...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
1. If a person is not fully insured against a potential negative shock, A. Her ex-post utility is lower when the shock occurs than when the shock does not occur B. Her ex-post utility is higher when the shock occurs than when the shock does not occur C. Her expected utility is higher than her ex-post utility when the shock does not occur D. Her expected utility is lower than her ex-post utility when the shock occurs E. None of the above 2. Measured returns to education: A. Overestimate the real returns of education, but this has nothing to do with ability bias B. Underestimate the real returns of education, but this has nothing to do with ability bias C. Overestimate the real return of education, because of the ability bias D. Underestimate the real returns to education, because of the ability bias E. Is an unbiased estimate of the real return to education 3. Tatu's income from farming is generally $450. This year, rains came late and on average the village lost $130 per family due to the bad timing. Tatu's realized income was $430. Under village insurance: A. Tatu's consumption is $450 B. Tatu's consumption is $430 C. Since Tatu suffered a negative idiosyncratic shock, she is expected to receive some positive transfers from the insurance pool. D. Since Tatu suffered a positive idiosyncratic shock, she is expected to give some positive transfers from the insurance pool. 4. Limited liability: A. Increases the interest rate that banks charge B. Reduces the incentive to work C. Protects borrowers from the consequence of bad shocks D. All of the above E. None of the above 5. The difference in days of school attended between children randomly assigned to small class size classrooms and those randomly assigned to a large class size classroom is 10 days. The average attendance rate in large classes is 210 days (out of 240 possible days in the year). A. Because of selection bias (i.e., omitted variable bias), the average treatment effect is underestimated in this cross- sectional study. B. Because of selection bias (i.e., omitted variable bias), the average treatment effect is overestimated in this experimental study. C. Small class sizes cut absenteeism by 4.7% in this experimental setting. D. Small class sizes cut absenteeism by 33% in this experimental setting. 1. If a person is not fully insured against a potential negative shock, A. Her ex-post utility is lower when the shock occurs than when the shock does not occur B. Her ex-post utility is higher when the shock occurs than when the shock does not occur C. Her expected utility is higher than her ex-post utility when the shock does not occur D. Her expected utility is lower than her ex-post utility when the shock occurs E. None of the above 2. Measured returns to education: A. Overestimate the real returns of education, but this has nothing to do with ability bias B. Underestimate the real returns of education, but this has nothing to do with ability bias C. Overestimate the real return of education, because of the ability bias D. Underestimate the real returns to education, because of the ability bias E. Is an unbiased estimate of the real return to education 3. Tatu's income from farming is generally $450. This year, rains came late and on average the village lost $130 per family due to the bad timing. Tatu's realized income was $430. Under village insurance: A. Tatu's consumption is $450 B. Tatu's consumption is $430 C. Since Tatu suffered a negative idiosyncratic shock, she is expected to receive some positive transfers from the insurance pool. D. Since Tatu suffered a positive idiosyncratic shock, she is expected to give some positive transfers from the insurance pool. 4. Limited liability: A. Increases the interest rate that banks charge B. Reduces the incentive to work C. Protects borrowers from the consequence of bad shocks D. All of the above E. None of the above 5. The difference in days of school attended between children randomly assigned to small class size classrooms and those randomly assigned to a large class size classroom is 10 days. The average attendance rate in large classes is 210 days (out of 240 possible days in the year). A. Because of selection bias (i.e., omitted variable bias), the average treatment effect is underestimated in this cross- sectional study. B. Because of selection bias (i.e., omitted variable bias), the average treatment effect is overestimated in this experimental study. C. Small class sizes cut absenteeism by 4.7% in this experimental setting. D. Small class sizes cut absenteeism by 33% in this experimental setting.
Expert Answer:
Answer rating: 100% (QA)
The detailed answer for the above question is provided below answer 1 A 2 D 3 B 4 D 5 B Explanation 1 If a person is not fully insured against a poten... View the full answer
Related Book For
Cost Management A Strategic Emphasis
ISBN: 978-1259917028
8th edition
Authors: Edward Blocher, David F. Stout, Paul Juras, Steven Smith
Posted Date:
Students also viewed these mathematics questions
-
Which of the following statements is incorrect A domestic subsidiarys earnings are taxed in the year earned A foreign corporations less than 50 ownership are not taxed until repatriated All of a...
-
Which of the following statements is incorrect regarding manufacturing overhead? a. Manufacturing overhead is an indirect costs to units or products. b. Manufacturing overhead includes both fixed and...
-
Which of the following statements is most correct? A). All else equal, a projects IRR decreases as the cost of capital declines. B). All else equal, a projects NPV is affected by changes in the cost...
-
Net income Depreciation expense Accounts receivable increase (decrease) Inventory increase (decrease) Accounts payable increase (decrease) Accrued liabilities increase (decrease) O Changes in current...
-
Given the information in Questions 1 and 2, explain what happens to the returns to capital and labor in each country after trade begins.
-
What four fundamental factors affect the cost of money?
-
What is eco-efficiency? How is it measured? Why is it measured? Where is it reported?
-
Consider the following key performance indicators and classify each indicator according to the balanced scorecard perspective it addresses. Choose from the financial perspective, customer...
-
TU Limited is in an industry sector which is recovering from the recent recession. The of capacity although directors of the company hope next year to be operating at 85% currently the company is...
-
A company with EBIT of $5,000,000 is considering two financing alternatives. The first alternative would have $23 million of bonds at 7% interest and 900,000 common shares outstanding, whereas the...
-
Compare the differences between business-to-business (BTB) and business-to-consumer (BTC) sales. Identify two industries that represent each approach to selling and provide specific examples of the...
-
Suppose next year's annual dividend for each stock is expected to be $2.0 a share and the dividend growth rate is 4 percent. Based on the capital asset pricing model (CAPM), which one of the...
-
Prepare journal entry and adjusted journal entry: You have been hired as an accountant for ZKTZ Consulting Inc. This business was created when some friends decided to make use of their newly minted...
-
A cosine function has a maximum value of 1, a minimum value of -5 a phase shift of /4 to the right, and a period of 2, write an equation for function,
-
20. During one launch, when the 4.0-gram marble is at the peak of its trajectory, moving to the right, the only forces acting on it are the force of gravity, and a 0.01 N force of drag to the left....
-
1. A baseball is attached to the end of of 0.75 m long string. The ball is swung in uniform circular motion vertically and makes one complete revolution in 0.35 s. The ball moves clockwise with...
-
What are the companys top risks, how severe is their impact and how likely are they to occur?
-
Using the information in P11-2B, compute the overhead controllable variance and the overhead volume variance. Data From Problem 11-2B: Huang Company uses a standard cost accounting system to account...
-
In an article by P. C. Brewer and F. A. Kennedy (Putting Accountants on a Lean Diet, Strategic Finance, February 2013, pp. 2734, accessible at...
-
Can lean principles be applied to so-called knowledge work? This issue is addressed in the following article: D. R. Staats and D. M. Upton, Lean Knowledge Work, Harvard Business Review, October 2011,...
-
Beaumont Specialty Chemicals (BSC) is a manufacturer of specialty chemicals sold to manufacturers, hospitals, and other users. BSC produces about 1 million gallons of its main product, BSC-22, each...
-
For the Scotch yoke mechanism shown in Fig.3.27, find the velocity and acceleration of point \(B\). \(\omega_{2}=5 \mathrm{rad} / \mathrm{s}\), and \(O_{2} A=100 \mathrm{~mm}\). 2 45 3 .B. Scale: 1...
-
In Example 3.14 , calculate analytically, the acceleration of the piston and angular acceleration of the rod.
-
The crank of an engine \(300 \mathrm{~mm}\) long rotates at a uniform speed of \(300 \mathrm{rpm}\). The ratio of connecting rod length to crank radius is 4 . Determine (a) acceleration of the...
Study smarter with the SolutionInn App