When Sardar buys insurance, on net he
A) gains if the value of the insurance is greater than the price he pays the insurance company.
B) loses because the price must pay the insurance company lowers his expected utility.
C) gains because his actual wealth with the insurance is greater than his expected wealth without the insurance.
D) loses if the price of the insurance equals his expected loss from a bad outcome.
A
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In the above figure, the aggregate demand curve is AD2, so the short-run equilibrium level of real GDP is
A) $16 trillion. B) $16.5 trillion. C) more than $16 and less than $16.5 trillion. D) None of the above answers is correct.
A bilateral exchange rate is an exchange rate:
a. that has two sides: maximal and minimal. b. has exhibited both appreciation and depreciation. c. is a hybrid between fixed and floating. d. between two currencies.
In 1995, the General Agreement on Tariffs and Trade (GATT) was replaced by the World Trade Organization (WTO)
Indicate whether the statement is true or false
As long as price is greater than average variable cost, a firm maximizes its profit by producing that quantity of output for which
a. average revenue equals average total cost b. the price is the highest c. marginal revenue equals marginal cost d. average total cost is minimized e. average variable cost is minimized