Jon is risk averse. When he buys insurance against all risks, then
A) he knows his wealth with certainty.
B) his utility exceeds his expected utility.
C) his wealth exceeds his expected wealth.
D) all of the above.
A
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When marginal private cost is less than marginal social cost,
A. a public good exists. B. a negative externality exists. C. a positive externality exists. D. negative economic profits are made. E. a and d
Refer to Figure 9.7. Because of this policy, total producer surplus including funds received from the government will be at least
A) $10,000. B) $40,000. C) $80,000. D) $100,000. E) $160,000.
A 20 percent increase in the wage rate induces firms in an industry to reduce quantity demanded for labor by 5 percent in the first year. Five years later we would expect, other things constant,
A) the reduction in the quantity demanded of labor to be much greater than 5 percent. B) the reduction in the quantity demanded of labor to be less than 5 percent. C) the reduction in the quantity demanded of labor to be about 5 percent. D) the quantity demanded of labor to be back to its original level.
Countries that have a large number of embassies, have memberships to international organizations, and participate in UN peace missions would be categorized under _____ globalization
a. cultural b. social c. political d. economic e. ethical