When would a risk averse individual not insure a risky event?
What will be an ideal response?
Risk averse individuals are always willing to pay more than the minimum cost of insurance up to a point. If the insurance is priced above the maximum price the individual is willing to pay, he or she will not buy the insurance.
Economics
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Which of the following is NOT a function of the International Monetary Fund?
A) serve as lender of last resort for national governments B) administer an international foreign exchange system C) establish the SDR system nations utilize to settle international payment obligations D) establish and administer each nation's fiscal and monetary policies
Economics
A perfectly elastic demand curve is represented by a vertical line
a. True b. False Indicate whether the statement is true or false
Economics