Insurance works because it:
A. reallocates the costs of unforeseen events, sparing any individual from taking the full hit.
B. prevents any one individual from experiencing all the unforeseen events.
C. makes it less likely that their clients will experience unforeseen events.
D. None of these statements is true.
Answer: A
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Business owners who care only about making money are
a. likely to discriminate against certain groups of workers. b. likely to be replaced by discriminating businesses. c. more concerned about racial discrimination than gender discrimination. d. at an advantage when competing against those who practice discrimination.
Which of the following statements is not correct?
a. Two examples of early antitrust laws are the Sherman and Clayton Antitrust Acts. b. Antitrust laws automatically prevent mergers between companies that produce similar products. c. Antitrust laws give the government power to increase competition. d. Antitrust laws can reduce social welfare if they prevent mergers that would lower costs through more efficient joint production.