Suppose that productivity-enhancing technological progress affected more the production of chairs than the production of tables. This can be depicted using a production possibilities frontier in which
A) only the chair axis intercept increases.
B) only the table axis intercept decreases.
C) both intercepts increase; however, the chair intercept increases by more.
D) both intercepts increase; however, the chair intercept increases by less.
C
Economics
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If Shaniq is a risk averse, then
A) her cost of risk exceeds $0. B) she has diminishing marginal utility of wealth. C) she is willing to buy insurance if the cost of insurance is low enough. D) all of the above.
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A life insurance company requires new applicants to have a medical exam prior to writing the insurance policy. This requirement is an example of
a. signaling. b. screening. c. moral hazard. d. adverse selection.
Economics