Pooling individuals allow insurance companies to _______ risk from a societal point of view.
A. increase
B. decrease
C. do nothing regarding
D. none of these answer options are correct.
B. decrease
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To what do economists attribute the rapid growth of labor productivity in the United States relative to other countries?
A) the flexibility of U.S. labor markets and the efficiency of the U.S. financial system B) the high level of unemployment benefits the United States pays relative to other countries like Canada C) the strict government rules in the United States that regulate a firm's ability to hire and fire workers D) the low rate of job mobility in the United States
A customs union is an organization of nations whose members:
a. have impenetrable trade barriers among themselves but impose no trade barriers on nonmembers. b. have no trade barriers among themselves but impose common trade barriers on nonmembers. c. have no trade barriers among themselves but each member country chooses its own trade policies with nonmember countries. d. retaliate each other by raising reciprocal tariffs and calling for fair trade. e. neither have trade barriers among themselves nor impose any restriction on the nonmember countries.
Suppose that a negative externality is created by the production of good X. Which of the following statements is correct?
a. The social cost of producing good X includes the private cost plus the cost to bystanders of the externality. b. The increased social cost can be graphed as a decrease in demand. c. The market equilibrium quantity will be the socially optimal quantity as long as the government does not interfere. d. Both a and b are correct.
When the average propensity to save (APS) is 0.35, then this means
A. people are spending 35 percent of their disposable income and investing the remaining 65 percent. B. people are spending 35 percent of their disposable income. C. people are spending 65 percent of their disposable income. D. people are saving $0.65 of the last dollar earned.