John's utility of wealth curve is shown in the above figure. He currently has wealth of $20,000 and there is a 10 percent chance of losing it all. John is
A) willing to pay any price for insurance.
B) willing to pay no more than $2,000 for insurance.
C) willing to pay no more than $3,000 for insurance.
D) willing to pay $5,000 for insurance.
C
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The four market types are
A) perfect competition, imperfect competition, monopoly, and oligopoly. B) oligopoly, monopsony, monopoly, and imperfect competition. C) perfect competition, monopoly, monopolistic competition, and oligopoly. D) oligopoly, oligopolistic competition, monopoly, and perfect competition. E) perfect competition, imperfect competition, monopoly, and duopoly.
In the first half of 2008, food and energy costs in the United States increased. At the same time, the financial crisis slowed production. As a result, economists warned that the economy would
A) suffer an inflationary gap. B) see a decrease in aggregate demand and an increase in long-run aggregate supply. C) experience stagflation. D) see an increase in potential GDP.