When insurance companies set premiums, they are more likely to assess risk ______.
a. based on group averages
b. based on an individual basis
c. by assigning risk equally to all drivers
d. by ignoring the idea of moral hazard
a. based on group averages
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A tax on an imported good is called:
a. an export. b. dumping. c. a quota. d. a tariff. e. free trade.
Increased demand for U.S. products by foreign residents will lead to a depreciation of the U.S. dollar relative to foreign currencies
a. True b. False Indicate whether the statement is true or false
Exhibit 21-2 Production possibilities curves for U.S. and Mexico
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As shown in Exhibit 21-2, the United States has a comparative advantage over Mexico in:
A. wheat, but not in cloth. B. cloth, but not in wheat. C. both wheat and cloth. D. neither wheat nor cloth
In the short run, if the actual rate of inflation is lower than the expected rate, then:
A. Nominal wages will rise, profits will fall, and unemployment will rise B. Nominal wages will fall, profits will rise, and unemployment will fall C. Nominal wages will rise, profits will rise, and unemployment will fall D. Nominal wages will fall, profits will fall, and unemployment will rise