The two big problems facing insurance companies in trying to manage risk are:
A. risk pooling and diversification.
B. risk pooling and adverse selection.
C. adverse selection and moral hazard.
D. moral hazard and diversification.
C. adverse selection and moral hazard.
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Define the three functions of money
What will be an ideal response?
Which of the following reasons did not contribute to the rise of "King Cotton"?
a. Eli Whitney's invention of the cotton gin in 1793 b. soils and climate of the new Southwest c. large shifts in slave populations d. declines in slave populations that drove mechanical innovation
Compared to higher-income families, low-income families would demand proportionately more of which of the following kinds of goods?
a. Luxury goods. b. Substitute goods. c. Normal goods. d. Inferior goods.
If Ming is willing to pay $75 to attend the Broadway production of The Lion King but actually pays $40, she receives a consumer surplus of $35
a. True b. False Indicate whether the statement is true or false