What kinds of risks can't be insured?
What will be an ideal response?
Insurance works because the risks of adverse outcomes are independent, that is, one person suffering a loss does not affect the likelihood that other people will suffer similar losses. If the losses from an event are not independent, so that "everyone" suffers a loss at the same time, then the risk of loss cannot be insured.
Economics
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Private property rights help to ensure an efficient use of resources, because owners of the resources must bear the costs of inefficient use
a. True b. False Indicate whether the statement is true or false
Economics
M1 is considered ___________ measure of money compared to M2.
A. a more legitimate B. a less legitimate C. just as legitimate a D. a more stable
Economics