Given the information in Scenario 14.1, how much labor will be hired to maximize profit?
A) 1/16
B) 1/2
C) 1
D) 4
D
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Individuals who face greater risks
a. are more likely to purchase insurance b. are less likely to purchase insurance c. are neither more nor less likely to purchase insurance d. are risk neutral
Unemployment caused by a contraction in the economy is called: a. frictional unemployment. b. cyclical unemployment
c. structural unemployment. d. seasonal unemployment.
Motorcycle helmet laws have been controversial in some states. Riders prefer the feel of the wind on their faces. Others, however, point out that riders without helmets are more likely to suffer severe injury and run up hospital bills at public expense. Which of the following would most likely reduce the incidence of high bills for helmetless riders?
a. raise insurance rates for helmetless riders b. lower insurance rates for helmetless riders c. publish information on injury rates for helmetless riders d. subsidize hospitals
A trade imbalance occurs when:
A. exports from and imports to a country suddenly decline. B. a country does not import or export any goods or services. C. the quantity of imports equals the quantity of exports, but are large relative to total output. D. the quantity of a country's exports differs significantly from the quantity of imports.