Risk diversification refers to the process by which:
A. people organize themselves in a group to collectively absorb the cost of the risk faced by each individual.
B. insurance companies change the risk aversion of their clients.
C. risks are shared across many different assets or people, reducing the impact of any particular risk on any one individual.
D. insurance companies reallocate the likelihood of catastrophes happening.
C. risks are shared across many different assets or people, reducing the impact of any particular risk on any one individual.
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A bowed production possibilities curve is consistent with
A) an unchanged opportunity cost. B) a technologically inefficient society. C) the underutilization of productive resources. D) highly specialized resources.
What is meant by the demand for money?
What will be an ideal response?
If a firm is a perfectly competitive purchaser of factor inputs and the wage rate is $5, the marginal factor cost for labor is
A) greater than $5. B) less than $5. C) $5. D) indeterminate.
All of the following, except one, would shift the demand curve for pizza makers to the right. Which is the exception?
a. a decrease in the wage rate of pizza makers b. an increase in the demand for pizza c. a decrease in the price of pizza ovens d. an increase in the number of pizza parlors e. an improvement in the technology of making pizza