Van, whose utility of wealth curve is shown in the above figure, owns a home that is valued at $100,000. There is a 10 percent chance that the house will be destroyed by hurricane. The minimum cost of insurance in this case is
A) $10,000.
B) $20,000.
C) $30,000.
D) $40,000.
A
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A supply curve that is horizontal reflects a supply that
A) is elastic. B) is inelastic. C) is unit elastic. D) has a zero elasticity.
Refer to Figure 2-13. If the two countries have the same amount of resources and the same technological knowledge, which country has an absolute advantage in the production of both pineapples and coconuts?
A) neither country B) Costa Rica C) Guatemala D) cannot be determined
It is most likely that the federal government will never actually pay off the national debt
a. True b. False Indicate whether the statement is true or false
The primary deficit is equal to
A. the deficit plus net interest payments. B. total tax revenues minus net interest minus government expenditures. C. the amount by which government purchases, transfers, and net interest exceed tax revenues. D. the amount by which government purchases and transfers exceed tax revenues.