Can insurance be thought of as diversification? Defend your answer
Yes. It replaces a large single risk with a number of smaller risks.
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The factors of production are which of the following?
a. The outputs generated by the production process of transforming land, labor, and capital into goods and services. b. The land resources, such as natural resources, that are unimproved by human economic activity. c. Land (natural resources), labor (human capital, entrepreneurship), and capital (constructed inputs such as factories). d. Labor and capital in industrialized countries, where natural resources are no longer used to produce goods and services.
Which of the following is common to both tariffs and quotas?
A) Tariffs and quotas are both used as a means to increase government revenue. B) Tariffs and quotas both increase economic efficiency. C) Tariffs and quotas are both designed to reduce foreign competition faced by domestic firms. D) Tariffs and quotas are both examples of voluntary export restraints.