Actual insurance premiums charged by insurance companies may exceed the actuarially fair rates because:
A) the insurance companies have monopoly rights issued by state regulators.
B) the insurance companies are risk averse.
C) there are administrative costs and other expenses that must be covered by the premia.
D) insurance companies tend to over-state the risks they face.
C
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The opportunity cost of owning and using a firm's capital is defined as the capital's
A) variable cost. B) fixed cost. C) economic depreciation. D) nonpayment depreciation. E) explicit cost.
If country A is importing good x from country B where x is produced along a perfectly inelastic supply curve, then country B will suffer the entire deadweight loss from any tariff imposed on imports to country A.
Answer the following statement true (T) or false (F)
Assuming money neutrality in the classical model, a 10% increase in the nominal money supply would cause
A) a 10% increase in the real money supply. B) a 10% decrease in the real money supply. C) no change in the real money supply. D) a less-than-10% change in the price level due to a shift in the aggregate supply curve.
Country A had a population of 2,000, of whom 1,300 worked an average of 8 hours a day and had a productivity of 5 . Country B had a population of 2,500, of whom 1,700 worked 8 hours a day and had productivity of 4 . Country
a. A had the higher level of real GDP and real GDP per person. b. A had the higher level of real GDP and Country B had the higher level of real GDP per person c. B had the higher level of real GDP and Country A had the higher level of real GDP per person d. B had the higher level of real GDP and real GDP per person.