Why might a life insurance company insist on an individual having a physical exam before agreeing to provide life insurance to the individual?
What will be an ideal response?
The life insurance policy is a contract that transfers risk from the buyer to the seller, in this case from the individual to the company. The price of the contract is based upon certain assumptions regarding the general health of the individual and specific information such as gender, age, etc.The company wants to make sure there is not any information hidden (information asymmetry) or other problem that would significantly alter its decision to provide the coverage or the price of the coverage.
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Marginal revenue (MR) is ____ when total revenue is maximized
a. greater than one b. equal to one c. less than zero d. equal to zero e. equal to minus one
Economist who study the role of government in the market
Federal marketing orders were created in 1937 by way of which legislative act?
A) Cooperative Marketing Act B) Capper-Volstead Act C) Robinson-Putman Act D) Agricultural Marketing Agreement Act
Which country is the United States' largest trading partner in terms of volume of trade?
A. Mexico B. Japan C. China D. Canada