Insurance companies create wealth by
a. reducing the amount of risk that the risk averse must bear
b. reducing the amount of risk that risk lovers must bear
c. increasing the amount of risk that the risk averse must bear
d. increasing the amount of risk that risk lovers must bear
a
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Long-run economies of scale exist when the long-run average cost curve:
a. rises. b. remains constant. c. falls. d. does not exist.
Depreciation refers to a decrease in the value of a durable good caused by: a. an increase in the price level. b. changes in the interest rate
c. wear and tear over time. d. changes in tax laws. e. a decrease in its resale value.
The value of GDP calculated by the expenditure method: a. includes inflation, while the value of GDP calculated by the income method excludes inflation. b. excludes inflation, while the value of GDP calculated by the income method includes inflation. c. is always equal to the value of GDP calculated by the income method
d. is always greater than the value of GDP calculated by the income method.
Using Figure 3 above the distance between what 2 lines illustrate a recessionary expenditure gap?
A. Y1 to Y2 B. PAE1 to PAE2 C. PAE2 to PAE3 D. Y2 to Y3