Insurance companies create wealth by
a. reducing the amount of risk that risk averse individuals must bear
b. reducing the amount of risk that risk loving individuals must bear
c. increasing the amount of risk that risk averse individuals must bear
d. moving an asset from low to high value use
a
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The four categories of expenditure used by the expenditure approach method to calculate GDP are
A) consumption expenditure, taxes, saving and investment. B) consumption expenditure, investment, net imports and saving. C) saving, taxes, government expenditure and investment. D) consumption expenditure, investment, government expenditure and net exports.
In the long run, the main reason that a monopolist can earn positive economic profits while a perfectly competitive firm cannot is:
A. monopolists enjoy greater economies of scale. B. there are no barriers to entry in a perfectly competitive market. C. the monopolist faces an inelastic demand for its product. D. perfectly competitive firms face greater opportunity costs.
Why does the government work to eliminate artificial barriers to entry?
What will be an ideal response?
________ results when an economy experiences high unemployment and high inflation at the same time
a. Stagflation b. Deflation c. Reflation d. Recession