After Hurricane Katrina, there was considerable public outrage that many of the properties were not insured against flooding although they were insured against wind damage. What might explain these different approaches to insurance?
A) The risk of wind damage is potentially diversifiable, but the risk of flooding is not.
B) The risk of flood damage is potentially diversifiable, but the risk of wind damage is not.
C) predatory insurance policies
D) Neither the risk of wind damage or the risk of flooding is diversifiable.
A
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All of the following statements, except one, are correct in short-run equilibrium for both a single-price monopolist and a monopolist that practices perfect price discrimination. Assume that both firms are able to earn at least a normal profit. Which statement is the exception?
a. Both face downward-sloping demand curves for their output. b. Both produce all output units for which marginal revenue exceeds marginal cost. c. Both produce in the range where marginal revenue is positive. d. Both are price setters. e. Both produce an output level for which price exceeds marginal cost.
Explain the view of Thomas Malthus on population growth in 1789 and contrast it with what has happened since that time
What will be an ideal response?