Insurance companies can predict fairly accurately:
A. the type of losses policyholders will incur but not the percentage of policyholders that will file claims.
B. the percentage of policyholders that will file claims but not the policyholders that will file them.
C. which policyholders will suffer a loss but not the percentage of policyholders that will do so.
D. the percentage of policyholders who will have a claim and which policyholders will have a claim.
Answer: B
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If the price of automobiles were to increase substantially, the demand curve for automobiles would most likely
A) shift rightward. B) shift leftward. C) remain unchanged. D) become steeper.
A person who chooses not to be in the labor force reveals that
A. either leisure or the value of nonpaid labor is worth zero to him. B. either leisure or the value of nonpaid labor is worth less to him than the value that society places on his potential product in the market. C. either leisure or the value of nonpaid labor is worth more to him than the value that society places on his potential product in the market. D. his potential product in the market is zero.
Related to the Economics in Practice on p. 418: F. Scott Fitzgerald's The Great Gatsby is set in the "Roaring '20s." This decade in U.S. history was characterized by
A. economic expansion and low unemployment. B. the Great Depression and stagflation. C. economic expansion and high unemployment. D. recession and high unemployment.
What are the major economic effects of rent ceilings?
What will be an ideal response?