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Beatrix has $109 of wealth. She is contemplating a gamble that gives her a 0.25 probability of winning $180 and a 0.75 probability of losing $60. Her utility function is: U(M) = ln(M)
1. Which is the expected value of her wealth?
2. Which is the expected utility of wealth?
3. Is Beatrix risk averse? Explain you answer using a graph.
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Illustrate what is the ability to pay principle in public Fiance also what are some of the problems implementing it.
Contrast two or three key economic factors for this country with the United State economy also comment.
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As per to Global Insight, a Massachusetts economics consultancy, elucidate what will happen if oil prices remain in the range of $65 to $70 per barrel for a couple of more months.
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