Buying insurance and then never making a claim:
A. means buying the insurance was a bad decision.
B. does not mean buying the insurance was a bad decision.
C. is a poor use of money.
D. is considered by economists to be irrational behavior.
Answer: B
You might also like to view...
Stan owns a software design business. He obtained a bank loan to buy computer equipment for his business. He pays $1,000 per month for interest on the loan. He has 10 employees, each of whom is paid $4,000 per month
Because his business has been successful, next month he will increase employee wages to $5,000. If the revenue from his business remains at its current level, Stan is considering an addition to his office. Which of the following statements regarding Stan's business is false? A) The payments Stan makes to his employees are variable costs and explicit costs. B) The monthly payment Stan makes for his bank loan is a fixed cost. C) The time and effort Stan spends on his software design business is an implicit cost. D) The monthly payment Stan makes for his bank loan is an implicit cost.
A demand curve with unit elasticity can never touch either the vertical or horizontal axes
a. True b. False Indicate whether the statement is true or false
One concern of those who oppose the central bank targeting inflation at zero is that reducing inflation is costly. What is the cost of reducing the inflation rate?
An increase in production in the short run definitely results in an increase in
A. Average total costs. B. Average fixed costs. C. Total costs. D. Marginal costs.