In making decisions about insurance, a crucial piece of information to know is:
A. how likely is the event you're insuring against.
B. how easily you can reduce the risk of experiencing the event you're insuring against.
C. when the event you're insuring against is most likely to occur.
D. how many others will likely be affected by the event you're insuring against.
A. how likely is the event you're insuring against.
You might also like to view...
A very high fixed cost and a relatively low marginal cost is associated with
A) every type of good or product. B) an information product. C) a persuasive good. D) an experience good.
A principal-agent problem occurs when
a. either a seller or buyer of labor is able to exercise a personal interest that undermines market efficiency b. wage rates are greater than efficiency wages c. wage rates are less than efficiency wages d. agents representing professionals in a labor market exercise excessive negotiating power e. agents representing professionals in a labor market are unable to represent their clients in a manner that generates maximum returns to the client
Because of diminishing returns, a factor in relatively low supply has a
a. low marginal product and a low rental price. b. low marginal product and a high rental price. c. high marginal product and a low rental price. d. high marginal product and a high rental price.
What might cause economies of scale?