Of Any Two Gambles, No Matter What Their Expected Returns

question 9

True/False

Of any two gambles, no matter what their expected returns, a risk averter will choose the one with the smaller variance.

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Definitions:

Productivity Growth

Productivity growth refers to an increase in the efficiency of production or output per unit of input, typically measured over time and considered crucial for economic development.

Technological Change

The process of invention, innovation, and diffusion of technology or processes which significantly alters the way goods or services are produced.

Productivity

A measure of the efficiency of production, often quantified as the ratio of outputs produced to inputs used in the production process over a defined period of time.

American Economy

The economic system of the United States, characterized by a mix of private and public enterprises and a relatively high level of technological innovation and productivity.