If the probability of the bad outcome is 0.5, the benefit level of actuarily fair insurance will be half the premium.
Answer the following statement true (T) or false (F)
False
Rationale: It will be twice the premium.
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Figure 5-10
In the indifference curve pictured in Figure 5-10, which of the following is clearly true?
A. B is preferred to D. B. B is preferred to C. C. A is preferred to B. D. C is preferred to D.
When a small amount of output is produced per unit of the input, the input is said to exhibit
A. low productivity. B. high productivity. C. marginal productivity. D. derived productivity.
Price discrimination takes place when a firm
A) charges the same price for all the units of its product that it sells. B) charges different prices for different units of its product. C) is discriminated against by consumers. D) None of the above answers is correct.
When countries converge,
A) they all grow at the same rate. B) poorer ones grow faster. C) richer ones grow faster. D) richer ones do not grow.