In order for insurance companies to generate predictable payout, they need to:
A. spread the risk across many policies.
B. accept policyholders from a very specific geographic area.
C. offer only life insurance.
D. focus on insuring only specific events, for example only fire.
Answer: A
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What is an inferior good?
A) a product of low quality that we do not want to purchase B) a product for which demand increases when income increases, and demand decreases when income decreases C) a product for which demand increases when income decreases, and demand decreases when income increases D) a product that is complementary E) a product that is a substitute for another, better good
Suppose that macaroni and cheese is an inferior good and the price of macaroni and cheese rises. Explain the income and substitution effects of this price change
What will be an ideal response?
Low cost strategies are usually found in industries where
a. Products are not particularly differentiated b. Price competition tends to be fierce c. Both a and b d. None of the above
As of 2008, which of the following countries had a female literacy rate of less than 50%?
a. India b. Greece c. Finland d. Ethiopia e. Namibia