Which of the following helps to reduce risk?
A) Abstain from risk taking.
B) Obtain more information.
C) Diversify.
D) All of the above.
D
You might also like to view...
In the market for automobile insurance, moral hazard implies that
A) those who are insured might take greater risks. B) those who are uninsured might take greater risks. C) insured and uninsured alike will take greater risks. D) drivers with greater risks are more likely to buy insurance.
If a marginal cost pricing rule is imposed on the firm in the figure above, the deadweight loss will be
A) zero. B) $100. C) $200. D) $50.
Senior citizens can buy movie tickets at a lower price than other people. This is an example of
A. price discrimination. B. age discrimination. C. market failure. D. demand discrimination.
Suppose the central bank announces that it will permanently increase the inflation rate and there is central bank credibility
With adaptive expectations, expectations of inflation will adjust ________, and with rational expectations, expectations of inflation adjust ________. A) slowly; slowly B) slowly; immediately C) immediately; immediately D) immediately; slowly