The above figure shows the utility of wealth curve for a homeowner whose only possession is a $50,000 house
If there is a 20 percent chance that the home could be entirely destroyed, would this person buy a $20,000 insurance policy to replace the house if destroyed? A) No, it is too expensive.
B) No, he is not risk averse.
C) Yes, the homeowner would pay even more.
D) Yes, this is the most the homeowner would pay.
D
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The New Deal
A. may be summarized by these words: relief, recovery, and reform. B. introduced Medicare and Medicaid. C. succeeded in quickly extending the Great Depression. D. reduced the economic role of the federal government.
Which of the following is evidence of an ineffective cartel?
a. Output changes are dictated by changes in demand. b. Price changes are dictated by changes in demand. c. Members do not agree on output quotas. d. All of these.
If Jane can produce 3 pairs of shoes per hour, while Bob can produce 2, then ________ has a(n) ________ advantage in producing shoes.
A. Jane; comparative B. Bob; absolute C. Bob; comparative D. Jane; absolute
According to the Monetarists, the primary cause of inflation is:
A. large budget deficits. B. high taxes. C. rapid expansion of the money supply. D. government expenditures that are large relative to the size of the economy.