There is a 10% chance that you will have healthcare bills of $200,000; a 20% chance that you will have bills of $10,000; a 59% chance that you will have bills of $1,000; and an 11% chance of having bills of $0. What are your expected healthcare bills?
What will be an ideal response?
$22,590
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Which of the following is a valid reason for protecting an industry?
A) The industry is unable to compete with low-wage foreign competitors. B) Protection penalizes lax environmental standards. C) Protection keeps richer nations from exploiting the workers of poorer countries. D) None of the above reasons is a valid reason for protection.
Individuals who face greater risks
a. are more likely to purchase insurance b. are less likely to purchase insurance c. are neither more nor less likely to purchase insurance d. are risk neutral
Why is inflation considered a problem?
a. Firms gain too much economic power. b. It is always very high when it exists. c. People prefer falling prices. d. It is costly for society. e. Government gains too much economic power..
Efficiency is related to the size of the economic pie, whereas equality is related to how the pie gets sliced and distributed
a. True b. False Indicate whether the statement is true or false