Risk pooling:
A. reduces the chances of catastrophes happening.
B. lowers the costs of catastrophes when they occur.
C. allows individuals the peace of mind that they will never have to pay the full expense of a catastrophe if it hits them.
D. All of these statements are true.
C. allows individuals the peace of mind that they will never have to pay the full expense of a catastrophe if it hits them.
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To try to help farmers, governments I. set production quotas. II. set price ceilings
A) I and II B) only II C) only I D) neither I nor II
An increase in the wage rate will cause
a. increased employment b. a leftward shift in the labor supply curve c. an upward movement along the labor supply curve d. a rightward shift of the labor supply curve e. a leftward shift of the labor demand curve
The equilibrium price is the same as the market-clearing price
a. True b. False Indicate whether the statement is true or false
The negative relationship between the quantity demanded of a commodity and its price can be explained by the principle of
A. increasing total utility. B. contingent valuation. C. diminishing marginal utility. D. indifference analysis.