In an ad for insurance, the text reads "Life's an adventure, and there are plenty of perils awaiting your jewelry: a lost or broken stone, theft, accidental loss, damage, mysterious disappearance Have you thought about insurance?"
What is the economic reasoning for an individual to buy insurance?
A) Individuals who buy insurance are profit maximizers.
B) Individuals who buy insurance are rational.
C) Individuals who buy insurance are dishonest and can profit from dishonesty.
D) Individuals who buy insurance increase their expected utility by owning insurance.
D
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Both monopolies and monopolistically competitive firms set marginal revenue equal to marginal cost to maximize profit. Given the same cost curves, would you expect prices to be higher in a monopoly or a monopolistically competitive market?
What will be an ideal response?
Which of the following increases total factor productivity?
A) investment in machinery B) a harsh winter C) better access to credit D) new production procedures
Using the information in the table shown, the average revenue for 5 units is:
This table represents the revenues faced by a monopolist.
A. $600
B. $300
C. $3,000
D. $120
An example of a U.S. import would be:
A. a French bottle of wine consumed by an American. B. an Apple computer, made in the U.S., purchased by a U.S. college student who plans to study abroad in France. C. a bushel of apples that Canadians pick and enjoy during a lovely fall day in Vermont. D. an Apple computer, made in the U.S., purchased by a French student.