Refer to Scenario 17.4. If the flood control system were in place, the firm could insure against a flood for an annual premium of

The International Maritime Bureau said the waters off Somalia are the world's most dangerous, accounting for nearly a third reported pirate attacks worldwide. Suppose all boats are insured to $100,000 and pay a premium of $10,000 each

Suppose 10 out of 100 boats are attacked by pirates and these 10 file claims with their insurance. If the insurance company's only costs are the claims it must pay, has the insurance company earned an economic profit? A) Yes, they earned an economic profit of $90,000. B) No, they broke even. C) No, they sustained an economic loss of $90,000. D) Yes, they earned an economic profit of $1,000,000.

"Convergence" has been occurring among the OECD countries because

A) the richer countries give away more of their output than the poorer ones. B) the poorer countries have had higher growth rates than the richer ones. C) the richer countries have had higher growth rates than the poorer ones. D) the poorer countries have had positive growth rates, while the richer ones have had negative growth rates. E) the procedures for measuring output per capita have been changing.