You Are Going Up in an Elevator That Is Accelerating

question 97

Multiple Choice

You are going up in an elevator that is accelerating upwards on Earth.Suppose you were to do the same thing on Mars.Your weight on Mars will be ___ your weight on Earth.

• A)less than
• B)equal to
• C)greater than
• D)unable to tell
• E)depends on what g is on Mars

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Definitions:

Efficient Markets Hypothesis

A theory stating that asset prices fully reflect all available information, making it impossible to consistently achieve higher returns than the average market return.

Random Walk

The path of a variable whose changes are impossible to predict.

Marginal Utility

The additional satisfaction or usefulness gained from consuming one more unit of a good or service.

Risk-averse

Describes individuals or entities that prefer to avoid risk and would rather choose a certain outcome over a gamble with a potentially higher, but uncertain, return.