Author Question: Insurance works best in situations where there is a. a high probability of a small loss. b. a low ... (Read 92 times)

renzo156 · **on:** Jul 1, 2018

Insurance works best in situations where there is
a. a high probability of a small loss.
b. a low probability of a small loss.
c. a high probability of a large loss.
d. a low probability of a large loss.
e. the level of probability and the size of the loss are irrelevant.

Question 2

The slope of the production possibility frontier shows
a. how inputs must be changed to keep them fully employed.
b. the technically efficient combinations of the two goods.
c. how demanders are willing to trade one good for another.
d. the opportunity cost of one good in terms of the other.