From an economic perspective, when a consumer decides to buy more life insurance, the consumer has most likely concluded that the marginal
A. benefit of more insurance coverage is greater than the total benefit.
B. cost of more insurance coverage is negative.
C. cost of more insurance coverage is equal to the payment for the extra coverage.
D. cost of more insurance coverage is less than the marginal benefit.
Answer: D
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Collateralized debt is also know as
A) unsecured debt. B) secured debt. C) unrestricted debt. D) promissory debt.
The precautionary demand for money:
a. varies inversely with the income level. b. varies inversely with the price level. c. is used as an insurance agent against unexpected needs. d. states that nominal income must exceed real income. e. is a classical concept in monetary theory.
What advice did many analysts give to postcommunist states, particularly Russia, to boost their stagnating economies?
a. to strengthen a centralized state authority b. to ignore the invisible hand of the market c. to privatize state-owned businesses
Suppose over the last year that the price of iron ore increased from $1,200 a ton to $1,275 a ton. Over the same time a measure of the overall price level increased from 150 to 156 . The price of iron ore increased by
a. less than inflation, so it became less scarce. b. less than inflation, so it became more scarce. c. more than inflation, so it became more scarce. d. more than inflation, so it became less scarce.