If insurance is available on an activity:
A) more of that activity will occur
B) less of that activity will occur
C) investors will be less likely to hedge
D) it increases the risk of engaging in that activity
A
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The sooner a payment is received and the higher the interest rate, the greater the present value of a future payment
a. True b. False Indicate whether the statement is true or false
Which of the following is a private owner prohibited from doing?
What will be an ideal response?
Table 1.2 shows the hypothetical trade-off between different combinations of Stealth bombers and B-1 bombers that might be produced in a year with the limited U.S. capacity, ceteris paribus.Table 1.2Production Possibilities for BombersCombinationNumber of B-1 BombersOpportunity cost(Foregone Stealth)Number of Stealth BombersOpportunity cost (Foregone B-1)A20NA195 B35 180 C45 150 D50 100NAThe lowest opportunity cost in Table 1.2 for Stealth Bombers is
A. 2 B-1 bombers B. 3 B-1 bombers C. 4 B-1 bombers D. 10 B-1 bombers
According to the quantity theory of money, persistent inflation can only be caused by:
A. a continually-growing government deficit. B. a high rate of unemployment. C. a low rate of unemployment. D. money supply growth that exceeds real GDP growth.