When free markets ration goods with prices, it is both efficient and impersonal
a. True
b. False
Indicate whether the statement is true or false
True
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If production technologies are homothetic, all cost-minimizing production plans lie on the same ray from the origin for a given set of input prices.
Answer the following statement true (T) or false (F)
Mean reversion refers to the tendency for
A) futures prices to revert to the prices of the underlying securities. B) the long-run mean return on stocks to equal the long-run mean return on bonds. C) stocks with high returns today to experience low returns in the future and for stocks with low returns today to experience high returns in the future. D) financial analysts whose stock picks have earned above-normal returns in the past to be unable to pick stocks that will perform as well in the future.
If unions were formed in more industries, the supply of labor in other industries would
a. increase, causing employment in other industries to rise. b. increase, causing employment in other industries to fall. c. decrease, causing employment in other industries to rise. d. decrease, causing employment in other industries to fall.
Use the following scenario for the question below. A group of 100 people seeks out an insurance company to underwrite health insurance for its members. The expected medical spending for the group is $150,000. What will the average premium be if the health insurance company estimates the premium adding net loading costs of 15 percent?
a. $1,200 b. $2,250 c. $1,500 d. $1,725 e. $1,765