Pirates have been intensely attacking ships off the shore of Somalia this year. Boat owners have reportedly coughed up more than $30 million in ransom and insurance premiums have shot up. Why would insurance premiums increase dramatically?
I. Because the probability of pirate attack has increased
II. Because consumers' willingness to pay for insurance has increased because of these attacks
III. Because insurance claims have increased
A) I only
B) I and III only
C) III only
D) I, II, and III
D
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Since Norway has close trading links with the euro zone
A) a small reduction in its price will lead to an increase in euro zone demand for Norwegian goods that is large relative to Norway's output. Thus, full employment can be restored fairly quickly. B) a small reduction in its price will lead to a decrease in euro zone demand for Norwegian goods that is large relative to Norway's output. Thus, full employment can be restored fairly quickly. C) a small reduction in its price will lead to an increase in euro zone demand for Norwegian goods that is small relative to Norway's output. Thus, full employment can be restored fairly quickly. D) a big reduction in its price will lead to an increase in euro zone demand for Norwegian goods that is large relative to Norway's output. Thus, full employment can be restored fairly quickly. E) a big reduction in its price will lead to a decrease in euro zone demand for Norwegian goods that is small relative to Norway's output. Thus, full employment can be restored fairly quickly.
A functional relationship exists between two variables if the value of one variable depends on the value of the other variable
a. True b. False
Unlike firms in perfect competition, monopolists have control over
a. the costs of production b. what technology to use c. what price to charge d. how much to produce e. the choice of plant size
QN=67 (17776) Which of the following statistic is usually regarded as the best single measure of a society's economic well-being?
a. the unemployment rate b. the inflation rate c. gross domestic product d. the trade deficit