Risk averse individuals will fully insure to avoid risk. ?
Answer the following statement true (T) or false (F)
False
Rationale: If insurance contracts are not actuarially fair, risk averse individuals will not fully insure.
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A monopolist sells 100 units at $10 per unit and 90 units at $15 per unit. The marginal revenue from the tenth unit is
A) $1000. B) $1350. C) $100. D) $350.
Saving is
A) the amount one does not consume in a given period of time while savings is the accumulation of past periods of saving. B) the accumulation of past periods of savings while savings is the amount of disposable income that is not consumed in a given period of time. C) the difference between real GDP and disposable income while savings is the difference between disposable income and consumption spending. D) the difference between disposable income and spending on goods and services while savings is the difference between real GDP and disposable income.
Refer to the above table. What does the marginal revenue product equal when 28 workers are hired a week?
A) $1040 B) $900 C) $210 D) $7.50
Suppose France can produce 9,000 potatoes or 3,000 lemons per day, and that Italy can produce 3,000 potatoes or 3,000 lemons per day. Which of the following statements in this context is true?
a. France has an absolute advantage in producing lemons. b. Italy has a comparative advantage in producing potatoes. c. Italy would be willing to trade one lemon for anything greater than one potato. d. Both countries would be willing to trade at a rate of one lemon for one potato. e. France has a comparative advantage in producing lemons.