Pirates have been intensely attacking ships off the shore of Somalia this year. Boat owners have reportedly coughed up more than $30 million in ransom and insurance premiums have shot up. Why would insurance premiums increase dramatically?
I. Because the probability of pirate attack has increased
II. Because consumers' willingness to pay for insurance has increased because of these attacks
III. Because insurance claims have increased
A) I only
B) I and III only
C) III only
D) I, II, and III
D
Economics
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Group price discrimination results in social welfare that ________ under a single-price monopoly
A) is greater than B) is lower than C) is the same as D) might be greater or might be lower than
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The opportunity cost to a city for using local tax revenues to construct a new park is the:
a. best alternative foregone by building the park. b. dollar cost of constructing the new park. c. dollar cost of the old park. d. increased taxes necessary to pay for maintenance of the new park.
Economics