An automobile insurance company that writes millions of policies is practicing a form of:
A. eliminating systematic risk.
B. spreading risk.
C. mutual fund.
D. hedging risk.
Answer: B
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If net exports increases, but neither government expenditure nor net taxes change, saving must increase
Indicate whether the statement is true or false
If marginal cost is constant, what happens to a market if it alters from perfect competition to monopoly without any change in the position of the market demand curve or any variation in costs?
A) Consumer surplus increases, and the previously existing deadweight loss decreases. B) Consumer surplus increases, and the previously existing deadweight loss increases. C) Consumer surplus is eliminated, and an equal-sized deadweight loss is created. D) Consumer surplus decreases in size, and a deadweight loss is created.
Black markets emerge during times of
A. price floors. B. price ceilings. C. both price floors and price ceilings. D. neither price floors nor price ceilings.
Of the following countries, which one best exhibits the characteristics of a market economy?
A. Canada. B. Cuba. C. North Korea. D. Belarus.