An automobile insurance company on average charges a premium that:
A. equals 1/(expected loss) of each driver.
B. is greater than the expected loss from each driver.
C. is less than the expected loss from each driver.
D. equals the expected loss from each driver.
Answer: B
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Federal and state governments in the United States pay for ________ of health care spending
A) less than 10 percent B) approximately 34 percent C) just over half D) more than 80 percent
The network effect in the TV broadcasting industry results in
A) a positive market feedback between the number of advertisers and the size of TV audience. B) a negative market feedback between the number of advertisers and the size of TV audience. C) a positive market feedback between the number of advertisers and the number of TV channels. D) a negative market feedback between the number of advertisers and the number of TV channels.
In Canada, as elsewhere, the unemployment associated with a recession is called
a. structural unemployment b. frictional unemployment c. discouraged unemployment d. cyclical unemployment e. temporary unemployment
Public goods are
A) any goods or services produced by the government. B) provided to additional users at no additional cost. C) provided only by the capitalistic system. D) provided only by the communist system.