Critically evaluate the following statement. "The presence of risk and uncertainty poses a problem for the workings of the market."
What will be an ideal response?
This statement is false. In fact, many markets are designed to allow people to trade risk. Individuals who are risk-averse seek out other individuals (or more commonly firms) who are willing to take on those risks for a price.
Economics
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According to new growth theory, growth
A) occurs when real GDP greater than the subsistence level. B) depends on the population growth rate. C) is unending. D) ends when competition disappears. E) cannot be sustained without government hel
Economics
When will the difference between the actual deficit and the structural deficit be the smallest?
a. in a major recession b. in a major recession c. at full employment d. in an inflationary gap
Economics