Scatterbrain Samantha often forgets to lock her house. This has caused the probability of a burglary to be 30%. If her house gets broken into, she faces a property loss of $10,000, otherwise she gets to keep her $100,000 . If Samantha is offered an insurance policy for her house to protect her from loss at $3,000, would she buy the insurance?
a. Yes because she gets to now enjoy her wealth risk-free
b. No, because she can take the risk and be better off
c. Yes, because she is a risk lover
d. None of the above
a
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To attract more bidders, and more aggressive bidders, to your common-value auction
a. withhold relevant information about the value of the object b. allow bidders to know how others are bidding c. do not allow potential bidders to examine the object too closely d. do not hold oral auctions
The greatest global redistribution of income ever recorded occurred in the 1970s as a direct result of
a. a worldwide drop in food prices b. the OPEC cartel c. growing international oligopoly d. a shift from balanced to unbalanced oligopoly e. a shift from price leadership to kinked demand curve oligopoly