The idea of insurance
a. would not appeal to a risk-averse person.
b. is, other things the same, to reduce the probability of a fire, accident, or death.
c. is to share risk.
d. is to provide a sure thing, not a gamble.
c
You might also like to view...
Someone who is available for work but has not actively looked for work in the previous four weeks would be classified as
A) employed. B) not in the labor force. C) not in the working-age population. D) unemployed.
Assume the government decides to impose a per-unit tax on a good produced in a perfectly competitive market
a. Graphically illustrate the short-run effects of the tax on the cost conditions faced by a representative firm in the market. b. Explain the adjustment process to long-run equilibrium in the market. What has happened to long-run equilibrium price and output as a result of the tax? What has happened to the number of firms in the market? Why?
The purchasing power of one dollar is equal to _____
a. real GDP divided by nominal GDP b. nominal GDP divided by real GDP c. 1 minus the average price level d. the reciprocal of the average price level e. the implicit GDP deflator divided by the CPI
An understanding of macroeconomics is valuable because it can help
a. in making purchase decisions b. us to understand the forces that determine how fast the economy grows c. us to understand why some firms earn more economic profit than others d. to minimize the amount of tax an individual owes e. minimize the opportunity cost of making poor decisions