Suppose the insurance company cannot tell them apart but expects them to be different values and charges them an average premium of $1850 . How much profit would it make?
a. $1850
b. Zero-they would break even
c. They would make a loss of $650
d. They would make a loss of $1100
c
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If a firm faces a downward-sloping demand curve
A) it will always make a profit. B) the demand for its product must be inelastic. C) it can control both price and quantity sold. D) it must reduce its price to sell more units.
Refer to the above figure. How do you describe what is happening as the economy moves from point A to point C?
A) The economy has acquired new resources that are well suited for producing bread. B) Land that was once used to graze sheep is now being used to grow wheat. C) Resources are becoming unemployed. D) The technology for growing wheat has improved.
Which of the following contains a list only of things that increase when the budget deficit of the U.S. increases?
a. U.S. supply of loanable funds, U.S. interest rates, U.S. domestic investment b. U.S. imports, U.S. interest rates, the real exchange rate of the dollar c. U.S. interest rates, the real exchange rate of the dollar, U.S. domestic investment d. the real exchange rate of the dollar, U.S. net capital outflow, U.S. net exports
Which of the following is the best example of the law of supply?
a) A sandwich shop increases the number of sandwiches they supply every day when the price is increased b) A food producer increases the number of acres of wheat he grows to supply a milling company c) A catering company buys a new dishwasher to make their work easier d) A milling company builds a new factory to process flour to export