The purchasing power parity theory is limited in its applicability by the facts that some goods are not internationally traded and some countries impose tariffs on imported goods

Which of the following has not been promoted by HPAE?

A) Large job creation in the government sector B) Land reform C) Free basic health care D) Significant investments in rural infrastructure

People buy insurance

a. because they are risk averse. b. to defer consumption. c. because of externalities. d. to maximize their welfare. e. to ensure against poor health.