When insurance companies offer fair insurance,
A) risk-averse agents always purchase it.
B) risk-neutral agents never purchase it.
C) risk-loving agents always purchase it.
D) nobody would purchase fair insurance.
A
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Business cycles ________, and recessions ________
A) are of equal length; are of equal severity B) are of equal length; differ in severity C) vary in length; are of equal severity D) vary in length; differ in severity
More farmers have recently entered the corn industry. In addition there has been a technological advancement in the fertilizer industry providing corn farmers with a cheaper and a more effective fertilizer
In the market for corn, the effects these changes will have on the equilibrium price and quantity are A) price will increase, and quantity will decrease. B) price will increase, and the effect on quantity is indeterminate. C) price will decrease, and quantity will increase. D) price will decrease, and the effect on quantity is indeterminate.
A decrease in the demand for peanut butter could be caused by a(n)
a. increase in the supply of peanut butter b. increase in the price of peanut butter c. doubling of the price of bread d. drought in Georgia that destroyed 30 percent of the peanut crop e. increase in consumer income
The Cournot model assumes that the firms take their competitors output as fixed.
Answer the following statement true (T) or false (F)