Why are some insurance companies interested in programs for nationwide disaster insurance for floods, earthquakes, and hurricanes?
What will be an ideal response?
Disasters are often regional, specific disasters are localized, and disasters occur at different times. By insuring for more risks together, companies can reduce the risks they would face in any single market.
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John Maynard Keynes attributed the "stickiness" of real wages in the early years of the depression to ______. a. the fall in the money supply. b. the tendency of people to cut wages slowly while looking for a job. c. the tendency of employers to ruthlessly replace long-time employees with theunemployed
d. resistance by workers, especially unionized workers, to wage cuts.
What is the largest possible loss that is consistent with a firm producing in a perfectly competitive market in long-run competitive equilibrium?
a. An amount equal to (price less average variable cost). b. An amount equal to total variable. c. Zero. d. An amount equal to total fixed cost.
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the long run would be:
A. P2 and Y2. B. P1 and Y2. C. P4 and Y2. D. P1 and Y1.
Total market supply can be derived by
A) horizontally summing individual supply curves at each and every price level. B) vertically summing individual supply curves at the current technology level. C) adding up the largest quantity demanded at various prices. D) looking at the changes in the price of raw materials needed to produce the product.