Steve owns a motorcycle valued at $5,000, and that is his only asset. There is a 5 percent chance that Steve will have an accident within a year. If he does have an accident, his motorcycle is worthless
Steve's utility of wealth curve is shown in the figure above. An insurance company agrees to pay Steve the full value of his motorcycle in case of an accident if he buys the company's insurance policy. The company's operating expenses are $500 per policy. With no insurance, Steve's expected wealth is A) $4,000.
B) $4,500.
C) $3,500.
D) $5,000.
B
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If planned expenditure is below output, as the economy approaches equilibrium, ________
A) planned expenditure is falling B) output is rising C) saving is rising D) all of the above E) none of the above
The simplified Keynesian model
A) holds the price level constant. B) holds real GDP constant. C) assumes investment and saving are always equal. D) assumes unemployment is unrelated to real GDP.
According to the World Bank, "extreme" poverty is defined as an income per person of less than
A. $2.50 per day. B. $5,000 per year. C. $1.90 per day. D. $29,000 per year.
From the passage of the 16th amendment to the U.S. Constitution, income taxes became the primary source of income for the U.S
a. True b. False Indicate whether the statement is true or false