In Eugene, Oregon, next year there is a 2% chance of an earthquake severe enough to destroy all buildings and personal property
Quincy, who has $3,000,000 in buildings and personal property, has the opportunity to purchase complete earthquake insurance. Which is true? A) Quincy should not purchase earthquake insurance unless he can get it for less than $60,000, because that's all he could possibly lose in an earthquake.
B) Quincy should not purchase earthquake insurance unless he can get it for less than $60,000, because that's his expected loss in an earthquake.
C) If Quincy buys earthquake insurance, and an earthquake does not occur, he will have received no utility from the transaction.
D) What Quincy is willing to pay for the earthquake insurance depends upon his degree of risk aversion.
E) Quincy should be willing and able to pay up to $3,000,000 for earthquake insurance.
D
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When the interest rate is above the equilibrium interest rate there is an
A) excess quantity of money and people will sell bonds. B) excess demand for money and people will sell bonds. C) excess quantity of money and people will buy bonds. D) excess demand for money and people will buy bonds.
What are the limitations in using break-even analysis?
What will be an ideal response?
Goods produced abroad and sold domestically are called exports and goods produced domestically and sold abroad are called imports
a. True b. False Indicate whether the statement is true or false
The ocean remains one of the largest unregulated resources for each of the following reasons except
a. many countries have access to the ocean. b. it is difficult to get international cooperation among countries that hold different values. c. the oceans are so vast that enforcing any agreements would be difficult. d. All of the above are reasons the ocean remains one of the largest unregulated resources.