Can insurance be thought of as diversification? Defend your answer
Yes. It replaces a large single risk with a number of smaller risks.
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Demand tends to be more elastic when:
A. price is high and more inelastic when price is low. B. price is low and more inelastic when price is high. C. demand is perfectly inelastic. D. the quantity demanded is larger.
Another word for elasticity is
a. responsiveness b. happiness c. bonus d. profit e. surplus
An increase in the marginal propensity to save (MPS)
A. increases the marginal propensity to consume (MPC). B. increases autonomous consumption. C. increases the value of the multiplier. D. none of these.
As real U.S. GDP increases, U.S. income increases and so
A) U.S. imports increase. B) U.S. exports decrease. C) U.S. imports decrease. D) investment increases. E) U.S. exports increase.