What is one reason car insurance seems much cheaper than health insurance?
A) Health insurance entails more idiosyncratic than systematic risk, and therefore the gains to diversification are more dramatic.
B) Car insurance entails more systematic than idiosyncratic risk, and therefore the gains to diversification are more dramatic.
C) Health insurance entails more systematic than idiosyncratic risk, and therefore there are fewer gains to diversification.
D) Health insurance is manipulated through market power, and car insurance is not.
C
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When prices rise,
a. real estate is a better unit of account than money. b. money is a worse medium of exchange than real estate. c. money is a better store of value than real estate d. real estate is a better store of value than money.
One union follows another union and starts a work stoppage. This is an example of a
A) sympathy strike. B) secondary boycott. C) closed shop. D) union shop.