People buy insurance
a. because they are risk averse.
b. to defer consumption.
c. because of externalities.
d. to maximize their welfare.
e. to ensure against poor health.
A
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A consumer goes to purchase a TV advertised for $300. As he is checking out, the clerk informs him of a $20 rebate offer for the TV, which he fills out and receives in 3 months. What can one can infer about the consumer's reservation price?
A. It was exactly $300. B. It was at least $300. C. It was at most $280. D. It was at least $280 but less than $300.
All of the following are examples of human capital except:
A. an eye for decorating and color. B. a PhD in chemistry. C. an automotive manual. D. physical strength.
Which is necessary to make a trade in a barter economy?
A. Unlimited wants. B. Money. C. A coincidence of wants. D. A medium of exchange.
The “invisible hand” cannot fully work when government economic polies are in place. Explain
Please provide the best answer for the statement.