According to the theory of propitious selection:
a. risk-neutral people are more likely to opt for insurance coverage.
b. risk-averse people are more likely to opt for insurance coverage.
c. high-risk people submit large claims for insurance coverage.
d. high-risk people submit smaller claims for insurance coverage.
B
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In economics as well as in social relations in general, clear and concise information
A) eliminates the need for cooperation. B) guarantees effective cooperation. C) makes cooperation easier to achieve. D) makes cooperation more difficult to achieve.
A large grain crop resulting from favorable weather conditions would shift which of the following curves?
a. only aggregate demand b. aggregate demand and short-run aggregate supply c. only short-run aggregate supply d. only long-run aggregate supply
Joanne states: "The best way to increase the wages of workers is to increase worker productivity." Is Joanne correct? Why or why not?
A competitive firm has been selling its output for $20 per unit and has been maximizing its profit, which is positive. Then, the price rises to $25, and the firm makes whatever adjustments are necessary to maximize its profit at the now-higher price. Once the firm has adjusted, its
a. quantity of output is higher than it was previously. b. average total cost is higher than it was previously. c. marginal revenue is higher than it was previously. d. All of the above are correct.