Farmers who purchase insurance against crop failures tend to be pooled with farmers far away. Why might this be the case?
A) The weather in a single geographic area represents idiosyncratic risk, which is diversifiable.
B) The weather in a single geographic area represents systematic risk, which is not diversifiable.
C) The weather in far-flung geographic areas represents systematic risk, which is not diversifiable.
D) The weather in far-flung geographic areas are commonly positively correlated.
A
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In an economy that did not use money, but in which barter was exclusively employed for the exchange of goods, inflation
A) could not occur. B) would be almost entirely the result of speculation. C) would benefit buyers more than sellers. D) would redistribute real income rather than money income. E) would strike hardest at those on fixed incomes.
The three curves in the above figure are
A) (1 ) the long-run aggregate supply curve, (2 ) the aggregate demand curve, and (3 ) the short-run aggregate supply curve. B) (1 ) the long-run aggregate supply curve, (2 ) the short-run aggregate supply curve, and (3 ) the aggregate demand curve. C) (1 ) the short-run aggregate supply curve, (2 ) the aggregate demand curve, and (3 ) the long-run aggregate supply curve. D) (1 ) the aggregate supply curve, (2 ) the short-run aggregate demand curve, and (3 ) the long-run aggregate demand curve.
Government involvement has become so prevalent in the U.S. economy that the U.S. economy is now generally considered to be a socialist economy
a. True b. False Indicate whether the statement is true or false
Would a profit-maximizing firm sell at a price where demand is inelastic? Explain