Many residents of the city of Adelphia drive without automobile insurance. Assuming that Adelphia is just like any other city and these are risk averse individuals, which of the following is most likely TRUE?
A) Economic models do not work.
B) These people maximize wealth.
C) The price of automobile insurance exceeds their maximum value of insurance.
D) There are no automobile accidents or thefts in the city of Adelphia.
C
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A single-price monopoly transfers
A) consumer surplus to producers. B) producer surplus to consumers. C) economic profit to consumers. D) economic profit to the government. E) economic profit to deadweight loss.
Each regional Federal Reserve Bank is owned by
A) the member banks in its district. B) the Federal Deposit Insurance Corporation. C) those who purchase its stock on the open market. D) the taxpayers in its district.
The Federal Reserves responses to the financial crisis that began in 2007 include:
a. cautious cuts in the Federal funds rate. b. large expansions of credit. c. underwriting lending in many markets. d. All of the above are correct. e. Only b and c are correct.
All of the following components add up to the current account, except:
a. unilateral transfers. b. statistical discrepancies. c. services. d. merchandise. e. investment income.