Continuing with the same vacation-insurance company from the preceding question, is there any vacation-day price that would both strictly increase the family's expected utility (compared to no insurance) and strictly increase the profits of the risk-neutral insurance company?

Using the information in situation 20-2, if government increases their spending by $50 and increases net taxes by 50, then equilibrium aggregate output will change by

A) -$100. B) -$50. C) $50. D) $100.

In answering the question "Did the Civil War help promote economic growth and industrialization?" Hughes and Cain (2011) conclude that

(a) the war, rather than being a major stimulus to industry, was actually a great drain that slowed U.S. economic development for a time. (b) the war was indeed a major stimulus to industry because it promoted the building of wartime factories and new technology, which then provided a basis for rapidly growing production levels when peace came. (c) the war was a setback for the South but a great stimulus for the North. (d) the war seemed to have had no overall impact on the economic growth of the nation.