Which of the following individuals is most likely to purchase a life insurance policy that pays out an annual income beginning at a certain age until the individual's death?
A) Alma, who expects to live a long life, based on her family history
B) Avril, a tax attorney who wants to avoid adverse selection
C) Bradley who has six young children
D) Ian, who expects to have a short life expectancy because of an illness
A
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All of the following are possible explanations for the increase in U.S. government budget deficits as a percentage of GDP since the early 2001 EXCEPT
A) increases in tax revenues. B) increases in payments for entitlements. C) increases in government spending. D) decreases in tax rates.
Refer to the information provided in Figure 3.18 below to answer the question(s) that follow.
Figure 3.18Refer to Figure 3.18. The market is initially in equilibrium at Point A. If demand shifts from D1 to D2 and the price of burritos remains constant at $3.00, there will be
A. an excess supply of 150 million pounds of burritos. B. an excess demand of 100 million pounds of burritos. C. an excess supply of 50 million pounds of burritos. D. an excess demand of 150 million pounds of burritos.