A risk averse person will always buy insurance against risk
Indicate whether the statement is true or false
FALSE
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This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
According to the graph shown, if this economy were to engage in free trade, the good would:
A. be exported. B. no longer be produced domestically. C. be imported. D. not be imported or exported and only be produced domestically.
Let us suppose that consumer expectations are optimistic and therefore consumer spending rises. Which of the following effects would likely take place?
An increase in aggregate demand A decrease in aggregate demand A decrease in aggregate supply An increase in aggregate supply
Exhibit 7-19 Long-run perfectly competitive industry
?
As shown in Exhibit 7-19, assume that a perfectly competitive industry is in long-run equilibrium at point A. If the demand curve shifts from D1 to D2, the adjustment sequence between points will be:
A. A to B, then back to A. B. A to D, then back to A. C. A to D, then to C. D. A to B, then to C.
Land, labor, and capital are bought and sold in the product market.
Answer the following statement true (T) or false (F)