When Sardar buys insurance, on net he
A) gains if the value of the insurance is greater than the price he pays the insurance company.
B) loses because the price must pay the insurance company lowers his expected utility.
C) gains because his actual wealth with the insurance is greater than his expected wealth without the insurance.
D) loses if the price of the insurance equals his expected loss from a bad outcome.
A
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The market demand for wheat is Q = 100 - 2p + 1pb, where pb is the price of barley. If the price of wheat is $2, the price elasticity of demand
A) equals (-4/46). B) equals (-46). C) equals (-1). D) cannot be calculated without more information.
The major protection against sudden mass attempt to withdraw cash from banks is the:
a. Federal Reserve. b. deposit insurance provided by the FDIC. c. gold and silver backing the dollar. d. Consumer Protection Act.