Insurance companies can reduce risk by accepting premiums from
A) many people to insure against independent events.
B) few people to insure against dependent events.
C) few people to insure against independent events.
D) many people to insure against dependent events.
A
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The above table shows the marginal benefits and costs from production of fertilizer. There are no external benefits. If the market is perfectly competitive and unregulated, the efficient level of output could be achieved by setting a per ton tax of
A) zero. B) $30. C) $80. D) $110.
Which of the following is not true of derived demand?
A. It derives from the price of output goods. B. It is a function of marginal physical productivity. C. It is the marginal revenue product curve. D. It is not affected by prices of the input factors.
Identify the impact of an increase in the inventory stock during a year
a. Consumption spending will decrease thereby reducing the GDP. b. The GDP of a country should decrease by the amount of the increase in inventory. c. The capital investment in a country will increase. d. Neither the capital investment nor the GDP will change. e. The GDP of a country should increase by the amount of the increase in inventory.
On a graph we draw a consumer's budget constraint, measuring the number of apples on the horizontal axis and the number of light bulbs on the vertical axis. If the slope of the budget constraint is -2, then
a. an apple costs twice as much as a light bulb. b. the opportunity cost of a light bulb is 2 apples. c. the opportunity cost of an apple is one-half of a light bulb. d. All of the above are correct.