If Risky, Riskier, and Riskiest Insurance decided to begin charging all of its auto insurance clients the same premium, what would eventually happen?
a. They would have only safe drivers.
b. They would have only dangerous drivers.
c. They would have an equal blend of safe and dangerous drivers.
d. They would have only medium-risk drivers.
b. They would have only dangerous drivers.
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Classify each of the following goods on the basis of the characteristics of excludability and rivalry in consumption giving appropriate reasons: a) A lighthouse b) A pair of shoes c) A paid Web site d) A congested non-toll road
What will be an ideal response?
In a free market there are significant restrictions on how a good or service can be produced or sold
Indicate whether the statement is true or false
Refer to Figure 28-1. Suppose that the economy is currently at point A. If the Federal Reserve engaged in expansionary monetary policy, where would the economy end up in the short run?
A) It would remain at point A. B) point B C) point C D) point D E) point E
The Federal Reserve helped J.P. Morgan purchased Bear Stearns by agreeing to purchase some unwanted Bear Stearns assets
a. True b. False Indicate whether the statement is true or false