An insurance policy is a product that:
A. allows people to pay to reduce uncertainty in some aspect of their lives.
B. involves a company paying individuals very large sums of money if they encounter any risk.
C. involves individuals paying a company to ensure they don't experience any risk.
D. involves individuals paying a regular fee in return for an agreement that the insurance company will cover all expenses associated with risky behavior.
C. involves individuals paying a company to ensure they don't experience any risk.
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Important factors that change the demand for dollars and hence shift the demand curve for dollars include which of the following?
I. interest rates around the world II. the current exchange rate III. the expected future exchange rate A) I and II B) I and III C) II D) I, II, and III
If we consider the equation PAE = A + bY the independent part of the equation that depends on income is:
A. PAE B. A C. Y D. b
Which of the following is a mechanism Keynes advocated for dealing with a situation of depressed output?
A. Laissez-faire B. Raising taxes C. Increasing government expenditure D. Increasing supply incentives
Which of the following best describes "the value of a statistical life"?
A. The monetary value treated as the cost of an additional death from pollution B. The cost to society of an average person's lifetime consumption C. The total monetary value of a person's current income and expected future income D. The price society would pay, on average, to avoid a certain death