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Author Question: If global warming began to cause random world-wide damage to crops, insurance companies A) would ... (Read 133 times)

mrsjacobs44

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If global warming began to cause random world-wide damage to crops, insurance companies
 
  A) would insure against specific crop failures.
  B) would not insure against specific crop failures.
  C) would be indifferent between insuring or not.
  D) would find themselves facing prosecution for ignoring the problem for so long.

Question 2

Farmers who purchase insurance against crop failures tend to be pooled with farmers far away. Why might this be the case?
 
  A) The weather in a single geographic area represents idiosyncratic risk, which is diversifiable.
  B) The weather in a single geographic area represents systematic risk, which is not diversifiable.
  C) The weather in far-flung geographic areas represents systematic risk, which is not diversifiable.
  D) The weather in far-flung geographic areas are commonly positively correlated.


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zoeyesther

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mrsjacobs44

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Reply 2 on: Jul 1, 2018
Gracias!


Mochi

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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