What is one reason the federal government might "bail out" farmers in flood prone areas of the country?
A) Such flooding is not diversifiable and therefore only non-profit entities, such as the federal government, can cover the risks.
B) Such flooding is diversifiable, but insurance company CEOs are more concerned with their stockholder wealth than the well-being of farmers.
C) Such flooding is diversifiable, but the market for such insurance policies cannot clear without the assistance of the International Community.
D) Such flooding is known to happen on a regular basis and therefore there is no "risk" to be insured against.
A
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Pegging the bond market in 1942–45 meant that World War II (1941–45)
(a) would be financed by free-market interest-rate determination. (b) fixed high interest rates. (c) fixed low interest rates. (d) sent high interest rates floating above the peg.
Suppose the short-run production function is q = 10 ? L. If the wage rate is $10 per unit of labor, then AFC equals
A) 0. B) 1. C) 10/q. D) It cannot be determined from the information provided.
The price elasticity of demand for a demand curve that has a zero slope is
A) zero. B) one. C) negative but approaches zero as consumption increases. D) infinity.
An expectation of increased prices of a good in the future is likely to:
A. increase current demand. B. decrease current demand. C. have no impact on current demand. D. only affect seller's decisions.