John's utility of wealth curve is shown in the above figure. He currently has total wealth of $20,000. If there is a 50 percent chance that his $10,000 car will be stolen, what is the value of insurance against the theft?

A) $0
B) $5,000
C) $7,000
D) $13,000


C

Economics

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Net foreign investment is a measure of net capital outflows, equal to capital outflows minus capital inflows in a given period of accounting

Indicate whether the statement is true or false

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Let D = demand, S = supply, P = equilibrium price, Q = equilibrium quantity. What happens in the market for solar panels if the government offers tax breaks to encourage manufacturers to produce more solar panels?

A) S increases, D no change, P decreases, Q increases. B) D increases, S no change, P and Q increase. C) D and S increase, P and Q decrease. D) D no change, S increases, P decreases, Q decreases.

Economics

The purchasing power of money decreases as the price level increases.

Answer the following statement true (T) or false (F)

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A single supplier of a good or service for which there is no close substitute is referred to as a(n)

A) strategic competitor. B) monopoly. C) oligopoly. D) monopolistic competitor.

Economics