Risk pooling:
A. reallocates the likelihood of catastrophes happening.
B. reallocates the costs of catastrophes when they occur.
C. diversifies the risk of catastrophes occurring.
D. gathers individuals with similar risks and pools them together.
B. reallocates the costs of catastrophes when they occur.
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If the supply of automobiles becomes more inelastic, then a tax on automobiles is
A) paid more by the buyers after the change than before. B) paid more by the sellers after the change than before. C) always split evenly between the buyers and the sellers. D) paid more by the government after the change than before. E) always paid entirely by the buyers.
Which of the following best represents total saving?
A) T - (G + TR) B) (Y - TR) + I C) (Y - C - G - NX) D) (Y + TR - T) + C
An decrease in domestic savings
a. decreases foreign borrowing. b. will improve the trade balance. c. will increase exports. d. will increase foreign borrowing.
Average variable cost is equal to total variable cost divided by quantity of output
a. True b. False Indicate whether the statement is true or false