Insurance companies reduce risk exposure in exchange for a portion of their insurance premiums by obtaining
A) government loan guarantees.
B) federal insurance.
C) reinsurance.
D) bankers acceptances.
C
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The fact of increasing opportunity cost when moving on the PPF means that
A) to increase the production of one product requires larger and larger sacrifices of the other good. B) to decrease the production of one product requires smaller and smaller sacrifices of the other good. C) to increase the production of one product requires smaller and smaller sacrifices of the other good. D) when the government forces a movement from one point on the PPF to another point, no production is lost. E) the PPF will be a negatively sloped straight line.
Which of the following statements is FALSE?
A) Other things being equal, society's overall well-being is reduced when a perfectly competitive industry is monopolized. B) When both a perfectly competitive industry and a monopolist face the same production costs and the same market demand curve,the monopolist offers a lower level of output for sale. C) The profit-maximizing monopolist will always produce only along the inelastic portion of the demand curve, whereas equilibrium in a perfectly competitive industry always occurs along the elastic portion of the demand curve. D) When both a perfectly competitive industry and a monopolist face the same production costs and the same market demand curve, the monopolist charges a higher price for its product than what would be charged in a perfectly competitive situation.
The government may not be able to improve the inefficiencies of a monopolistically competitive market
a. True b. False Indicate whether the statement is true or false
If purchasing-power parity between France and the U.S. holds, but then U.S. prices rise,
a. the real exchange rate is above its purchasing-power parity value. An increase in the nominal exchange rate can move it back. b. the real exchange rate is above its purchasing-power parity value. A decrease in the nominal exchange rate can move it back. c. the real exchange rate is below its purchasing-power parity value. An increase in the nominal exchange rate can move it back. d. the real exchange rate is below its purchasing-power parity value. A decrease in the nominal exchange rate can move it back.