If a homeowner's insurance policy provides coverage for less than 80 percent of the full replacement cost of the dwelling, then the loss of the residence will be settled for
A) the market value of the property less the land value.
B) the lowest repair bid.
C) either the actual cash value or the prorated repair cost.
D) the total replacement cost.
Answer: C) either the actual cash value or the prorated repair cost.
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When a market is efficient, the
A) sum of consumer surplus and producer surplus is maximized. B) deadweight gain is maximized. C) quantity produced is maximized. D) marginal benefit of the last unit produced exceeds the marginal cost by as much as possible. E) total benefit equals the total cost.
The above figure shows the market for rice in Japan. SDomestic represents the domestic supply curve, and Sworld represents the world supply curve. A $1 per unit tariff has the same effect on producer and consumer surplus as a quota of
A) 25 units. B) 30 units. C) 35 units. D) 65 units.
Externalities are created when parties not involved in an economic transaction are affected by it.
Answer the following statement true (T) or false (F)
If the U.S. interest rate is 4% per year and the U.K. interest rate is 9% per year, which of the following statements is TRUE?
a. The dollar will depreciate 4% in one year. b. The pound will depreciate 9% in one year. c. The pound will appreciate 5% in one year. d. The dollar will appreciate 4% in one year.