We have read in this chapter that people with insurance may be more likely to engage in risky behavior because they are insured. Does it make sense then that there should be an "insurance tax" on people that engage in these types of activities?
What will be an ideal response?
Answers will vary, but in general, this is not a good idea. The essence of this idea is to raise
the price of an insurance premium, which might discourage some from engaging in riskier
activities.
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________ could result in a recession because it would ________
A) An increase in government expenditures on goods and services; shift the AD curve to the right. B) An increase in the quantity of money; shift the AS curve to the right. C) An increase in investment; shift the AD curve to the right. D) A tax cut; shift the AS curve to the left. E) A rise in the price of oil; shift the AS curve to the left.
Raising funds through ________ is called indirect finance
A) retaining earnings B) issuing stock C) financial intermediaries D) issuing bonds
Show in a diagram an S-curve and a 45-degree line. Are all three points of intersection stable equilibrium points? Explain
What will be an ideal response?
The income that is available to individuals for consumption or investment is called disposable income
a. True b. False Indicate whether the statement is true or false