Risk pooling:
A. lowers the costs of catastrophes when they occur.
B. reduces the chances of catastrophes happening.
C. allows individuals the peace of mind that they will never have to pay the full expense of a catastrophe if it hits them.
D. All of these statements are true.
Answer: C
You might also like to view...
If the inflation rate is negative, the price level in an economy is
A) falling. B) rising slowly. C) constant. D) rising rapidly.
Which of the following is NOT correct about required reserve ratio?
What will be an ideal response?
Tijuana, Mexico is across the border from San Diego, California. It has become a world-leading producer and exporter of television sets and computer monitors, which it assembles in modern factories owned by multinational consumer electronics firms such as Sony. Initially, these electronics were produced in the industrialized countries of their parent companies, and after several years, the
production moved to Tijuana. This is an example of A) the product cycle. B) intraindustry trade. C) the specific factors model. D) the magnification effect.
In Figure 2.1, Box 6 would be labeled
A. Q/t for quantity per unit of time. B. S for supply. C. P for price. D. P* for equilibrium price.