The above figure shows the utility of wealth curve for a homeowner whose only possession is a $50,000 house. If there is a 20 percent chance that the home could be entirely destroyed, the highest price for insurance this person would pay is
A) $0.
B) $5,000.
C) $10,000.
D) $20,000.
D
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Compared to the world, the rate of U.S. population growth is
A) slower than in the world as a whole. B) about the same as in the world as a whole. C) much faster than in the world as a whole. D) incomparable because U.S. residents are born with a much greater chance of accumulating a lot of human capital. E) incomparable because we do not have accurate world population statistics.
If basic literacy promotes a consistency of individual and social goals
a. social returns exceed private returns b. private returns exceed social returns c. the individual's income will rise d. people should pay the full cost of their education e. costs of education will be low
Under Alan Greenspan and Ben Bernanke, the Federal Reserve was successful in pursuing a ________ policy
A) preemptive B) inflation targeting C) exchange rate targeting D) monetary targeting
Interest rate
What will be an ideal response?