Refer to Scenario 17.3. If the fire protection program were in place, the company could insure the warehouse for a premium equal to
A) the loss from the fire, $300,000.
B) the expected loss from the fire, $300.
C) the expected loss from the fire, $3,000.
D) the cost of the fire protection program, $80.
E) $0.
B
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In a country with a working-age population of 150 million, 120 million workers are employed and 10 million workers are unemployed. What is the size of the labor force?
A) 150 million B) 130 million C) 120 million D) 10 million
Under a favorable business environment and if the economic outlook of the future looked promising ________
A) firms might spend more for any given inflation rate B) planned investment might increase leading to a higher equilibrium level of output C) the aggregate demand curve would likely shift to the right D) all of the above E) none of the above
The financial system is inherently more unstable than most other industries due to the fact that:
A. a single firm failing in banking can bring down the entire system; this isn't true in most other industries. B. banks deal in paper profits, not in real profits. C. while in most other industries customers disappear at a faster rate, in banking they disappear slowly so the damage is done before the real problem is identified. D. there is less competition than in other industries.
If the opportunity costs of producing a good increase as more of that good is produced, the economy's production possibility frontier will be
A. a negatively sloped straight line. B. negatively sloped and "bowed inward" toward the origin. C. negatively sloped and "bowed outward" from the origin. D. a positively sloped straight line.