Critically evaluate the following statement. "The presence of risk and uncertainty poses a problem for the workings of the market."
What will be an ideal response?
This statement is false. In fact, many markets are designed to allow people to trade risk. Individuals who are risk-averse seek out other individuals (or more commonly firms) who are willing to take on those risks for a price.
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A country that during its entire history has borrowed more from the rest of the world than it has lent to it is a ________, and a country that during its entire history has invested more in the rest of the world than other countries have invested in
it is a ________. A) debtor nation; investor nation B) borrower nation; creditor nation C) debtor nation; creditor nation D) net borrower nation; net lender nation
The figure above shows the market for coffee If the government pays the coffee producers a subsidy and production increases to 30 million pounds per day, the deadweight loss is
A) zero. B) $7.5 million. C) $15 million. D) $10 million.
Identify factors that would cause consumption spending to increase. What effect would that have on aggregate demand?
Explain how stock options can ensure compatibility between the interest of stockholders and managers.
What will be an ideal response?