In general, people are willing to pay more than the expected value of insurance because:
A. most people would have trouble finding enough money to cover their losses.
B. they are risk-averse.
C. it allows them to afford major expenses from catastrophes without going bankrupt.
D. All of these statements are true.
Answer: D
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If Dell and Toshiba computers are substitutes and the price of dell computers increases we would expect to see
a. An increase in demand for Toshiba computers b. An decrease in demand for Toshiba computers c. An increase in the quantity of Toshiba computers demanded d. An decrease in the quantity of Toshiba computers demanded
Once the federal funds rate is reduced to zero, conventional expansionary monetary policy is no longer an option
a. True b. False Indicate whether the statement is true or false
Which of the following is true?
a. Changes in personal costs and benefits will exert a predictable impact on the choices of human decision makers. b. Only direct monetary costs matter in making decisions. c. If a good is provided free to an individual, its production will not consume valuable scarce resources. d. Secondary effects are seldom of importance in economics.
If a country's saving rises, then either its investment or its net capital outflow rises (or both)
a. True b. False Indicate whether the statement is true or false