The foundational principle that makes insurance companies work is called:
A. risk assignment.
B. risk analysis.
C. catastrophic causation.
D. risk pooling.
Answer: D
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The biggest benefit to members of a union is:
A. being able to bargain as a group. B. keeping non-union workers out of their industry. C. negotiating minimum wage legislation. D. getting raises without having to do any work.
John is an Asian 23-year-old male, and Ken is an Asian 43-year-old male. Both John and Ken are economics majors, and they graduated from the same college with the same GPA — John in 2006 and Ken in 1986 . John and Ken are both financial advisers at the same brokerage firm. John earns $52,000 a year, and Ken earns $88,000 a year. Select the best explanation for this wage difference
a. John has more human capital than Ken. b. John has less human capital than Ken. c. John has been discriminated against because he is young. d. Ken has been discriminated against because he is old.
In a perfectly competitive market, economic forces are controlled by government policy makers.
Answer the following statement true (T) or false (F)
A firm typically achieves its position as a monopolist as a result of
A) a small market and a constant average cost. B) a downward sloping demand for the product. C) barriers to entry. D) the absence of long-run profits in an industry.