The above figure shows the utility of wealth curve for a homeowner whose only possession is a $50,000 house
If there is a 20 percent chance that the home could be entirely destroyed, would this person buy a $20,000 insurance policy to replace the house if destroyed? A) No, it is too expensive.
B) No, he is not risk averse.
C) Yes, the homeowner would pay even more.
D) Yes, this is the most the homeowner would pay.
D
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You have data for the amount of rainfall in 50 cities for the month of June. The type of graph to best display these data would be a
A) multi-variable time series graph. B) trend-line diagram. C) time-series graph. D) scatter diagram. E) cross-section graph.
According to the new classical view, when the actual price level is greater than the expected price level
A) aggregate output is above the full employment level. B) aggregate output is below the full employment level. C) the aggregate supply curve will slope downward. D) the coefficient a is equal to zero.