Q1. Insurance works by spreading risk over -   a. the uninsured   b. a few people   c. several insurance companies   d. Many people Q2. Determining the risk associated with a particular group or activity is called -   a. discounting   b. risk determination   c. forecasting   d. underwriting

Q: 2008, a small country imported goods worth $400 billion and exported goods worth $245 billion. It…

A: Balance of trade (BOT) = Value of Exports − Value of Imports Here, BOT is the Balance of trade or…

Q: 2) Refer to the attached Figure 18. What would likely cause an increase in market supply from…

A: A perfectly competitive firm is a price taker, which means it takes the price determined by the…

Q: Suppose a bank has $2,500,000 in checkable deposits and the required reserve ratio is 20%. Also, the…

A: Required reserve ratio is a percentage of reserves that commercial banks want central banks to hold.

Q: Next question In a year, Marco buys 10 sweaters at $60 each and pays $40 for 10,000 gallons of tap…

A: Marginal utility refers to change in total utility with respect to change in output. It the…

Q: B. when economic profits are zero

A:

Q: An economist discussing trade policy in the New Republic wrote: "One of the benefits of the United…

A: International trade agreements govern the exchange of goods and services between two or more…

Q: According to the loanable funds model, decreasing the amount of saving and increasing the amount of…

A: A loanable funds market is the place where people interact to make an exchange of funds that are…

Q: H2 Suppose the economy is operating at its potential output and inflation equals its long-run level.…

A: Unemployment refers to the concept of people in the labor force having nowhere to work. The work…

Q: Joseph is currently spending his entire budget on two goods: food and entertainment. He was willing…

A: Joseph is currently spending his entire budget on two goods: food and entertainment. He was willing…

Q: How long (in years) will it take to quadruple it earns 0.08 compounded semiannually?

A: Given interest rate = 8 % compounded semiannually Semi annual rate = 8 / 2 = 4 % The rule of 144 The…

Q: What are the predictions of economic theory regarding the relationship between human capital and…

A: Human capital means skilled labour , professional individual , knowledgeable individual with great…

Q: Clancy has $4800. He plans to bet on a boxing match between Sullivan and Flanagan. He finds that he…

A: Total money=$4800

Q: Suppose $1 = 10.5 pesos in New York and $I =9.6 pesos in Mexico City. If you had $10,000 using…

A: Arbitrage refers to the purchase and sale of assets simultaneously in different markets for earning…

Q: Explain one of the causes for acquisition of ownership with contemporary examples.

A: When one business acquires the majority or all of the shares of another company in order to gain…

Q: For an interest rate of 8% per year compounded quarterly, determine the number of times interest…

A: Interest Rate is the rate of borrowing or lending of money from a lender or borrower respectively.…

Q: Camille's utility is given by U(x, y) = x0.5y0.5. She has an endowment of x = 100 and y = 100, while…

A: U(X,Y) =( X^0.5) (Y^0.5) Now, MUx =  0.5 (Y^0.5)/ (X^0.5)   Also, MUy = 0.5 (X^0.5)/ (Y^0.5)   MRS =…

Q: Alice and Bob are playing a repeated game in which a certain stage game is played twice in…

A: In the above game , the stage game is played twice in succession . Stage game refers to the base…

Q: 8) The value of the marginal product of any input is equal to the marginal product of that input…

A: Marginal product of labor refers to addition in total product by using one more unit of labor.

Q: The profit earned from selling the quantity Q1 at P1 is Profit1 = ____________________(identify the…

A: Answer 4)

Q: The Patel family buys a house from their retired neighbor Helga for $600.000, which is $400.000 more…

A: GDP can be calculated by counting the monetary transactions on the purchase of the house.

Q: Identify the economic participants represented by B and

A: Circular flow diagram is the diagram which shows the linkages/dependence of different sectors of the…

Q: : Briefly explain each of the following statements. 1. Tourism-related industries such as…

A: The concept that depicts different prices being charged by sellers for the same good is known to…

Q: For any given price, a firm in a competitive market will maximize profit by selecting the level of…

A: In competitive market, there are large number of firms selling identical goods.

Q: INFINITE REPETITION Consider the infinitely repeated game constructed from the following stage game.…

A: Given pay off matrix

Q: 5. The income effect of a price change a) is always positive. b) is always negative. c) may be…

A: When price of the good changes, total price effect depends on Substitution effect and income effect.

Q: Assuming the equilibrium unemployment rate is 5%, if actual output falls to 5 percentage points…

A:

Q: 2. Please Solve the subpart a,b,c max in 30 minutes thank u   a) Explain what is meant by monetary…

A: Hi! Thank you for the question As per the honor code, We’ll answer the first question since the…

Q: Alice chooses action a or action b, and her choice is observed by Bob. If Alice chooses action a,…

A: Given information Alice has 2 strategy= {a,b} Bob has 2 strategy ={c,d}

Q: Prove that Cov(a1X + b1, a2Y + b2) = a1a2Cov(X,Y).

A: We are required to prove that:- Cov(a1X+b1, a2Y+b2)=a1a2Cov(X,Y) Please find the images attached…

Q: good, A is the alternative price of an alternative good, and Y the incor e consumers. nen P= 6, A =3…

A: The Income elasticity of demand is the amount demanded of a specific item relies not just upon its…

Q: reserves are equal to $0 when the reserve ratio is 10%, the bank has deposits of $

A:

Q: Consider the process where S0 = 0 and {ut : t ∈ Z} is an i.i.d. random variable with N(0,σ2). a)…

A: * SOLUTION :-    (5) From given information the answer is provided as below

Q: If the cross elasticity of demand is -2: O a. The products are substitutes O b. The products are…

A: Cross price elasticity is the change in quantity demanded of one good due to change in price of…

Q: Senator Deal proposes to offer a choice to future retirees: if you retire before age 70, the…

A: Given that, a deal is offered to retirees in future that if they retire before 70, their benefit…

Q: .    Total quantity sold at both prices is Q3 = Q1 + Q2 = ___________.  4.    The profit earned from…

A:

Q: The following table contains hypothetical data for Canada's balance of payments in a particular…

A: Capital account of a country includes foreign investments and loans. It also includes monetary…

Q: The Utilitarian specification of the social welfare function (SWF) generally leads to a higher…

A: The Social Welfare Function (SWF) is a condition of individual preferences for optimizing social…

Q: possible What limits a consumer's consumption choices? A consumer's consumption choices are limited…

A: Consumer can only buy a good which is affordable for him and lies within his budget.

Q: If demand is price inelastic: O a. An increase in price decreases revenue O b. An increase in price…

A: Price elasticity of demand measures the responsiveness of quantity demanded to changes in the price…

Q: The income elasticity for good A is -2. Her current income is increases by 15%. Therefore, the…

A: Income elasticity shows change in quantity demanded when income level changes.

Q: Exercise 7.3 An insurer issues a whole life insurance with sum insured $500 000, with premiums…

A: Net premium is defined as the insurance premium that includes he amount that is needed for the…

Q: Discuss why Governments impose quotas on imports as in the example of quotas on apples. In your…

A: Amount is a type of exchange security. It is a legitimate breaking point on number of imports for a…

Q: The graph on the right represents the demand, marginal revenue, and marginal cost curves for a…

A: Meaning of Market: The term market refers to the situation under which the producers or the…

Q: A highway bridge is being considered for replacement. The new bridge would cost $X and would last…

A: * SOLUTION :-    (2)

Q: The nominal exchange rate is .80 euros per dollar and the real exchange rate is 4/3. Which of the…

A: Formula to be used: Real exchange in rate = Ratio of prices measured in same unit =Price of a good…

Q: What are some examples of rural and urban development?

A: Rural development is defined as a development and improvement in the productivity, social economic…

Q: Revenue increases from 10 to 12 and the income elasticity of demand is - 0.5. The quantity demanded…

A: Firms utilise elasticity to determine and change the prices of their products. It assists businesses…

Q: When a profit-maximizing firm is earning profits, what can identify those profits?  A. (P – AVC) × Q…

A: Profit maximization is the goal of all the firms operating in the market.

Q: . What other policy alternatives, generally, are available to address the externality?

A: A cost or benefit incurred or received by a producer that is not paid for by that producer is known…