Insurance companies offer only unfair insurance because
A) they are run by greedy capitalists.
B) they can fool customers into buying it.
C) they have operating costs.
D) their risks are positively correlated.
C
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According to the text, the main reason for people to hold money is
A) because they are irrational. B) to use it for different reasons. C) to tell other people how rich they are. D) to enjoy looking at the pictures of past leaders.
Refer to the above figures. A quota is placed on a foreign good. Which figure represents the situation in the domestic market for a competing domestic good?
A) Panel A B) Panel B C) Panel C D) Panel D
In setting reserve requirements, the Fed divides deposits into which of the following two broad categories?
a. NOW accounts and ATS accounts b. savings accounts and non personal time accounts c. transaction accounts and non personal time accounts d. check able deposits and transaction accounts
Suppose that policymakers are considering placing a tax on either of two markets. In Market A, the tax will have a significant effect on the price consumers pay, but it will not affect equilibrium quantity very much. In Market B, the same tax will have only a small effect on the price consumers pay, but it will have a large effect on the equilibrium quantity. Other factors are held constant. In
which market will the tax have a larger deadweight loss? a. Market A b. Market B c. The deadweight loss will be the same in both markets. d. There is not enough information to answer the question.