Individuals who fully insure their house and belongings against fire
A) have wasted their money if a fire does not occur.
B) generally do so in order that their after-fire wealth can be equal to their before-fire wealth.
C) generally do so in order that their after-fire wealth can be higher than their before-fire wealth.
D) generally do so in order to guarantee that the worst outcome, a fire with no insurance, does not occur.
E) can never come out as well financially after a fire as they were before it.
D
You might also like to view...
One important difference between monopoly and monopolistic competition is the
A) slope of the demand curve that the firms faces. B) point there are no barriers to entry in monopolistic competition. C) greater restriction of output in monopolistic competition. D) result that the marginal revenue and demand curves are the same for a monopoly.
Holding all else constant, a decrease in U.S. real GDP will ________ the supply for dollars in the foreign exchange market and ________ the equilibrium Mexican peso/U.S. dollar exchange rate.
A. increase; decrease B. increase; increase C. decrease; decrease D. decrease; increase