Author Question: An individual insured against a particular cost, a. has reduced incentives to take precautions ... (Read 73 times)

ss2343 · **on:** Jun 30, 2018

An individual insured against a particular cost,
a. has reduced incentives to take precautions against those costs.
b. may take on additional risk because he/she is insured.
c. faces incentives that can result in higher insurance rates.
d. All of the above are true.

Question 2

Firms in industrial countries find a larger market for their goods in other industrial countries than in developing countries because:
a. the consumption patterns in the industrial countries are highly heterogeneous.
b. the trade policies of the industrial nations are more favorable than the developing countries.
c. the industrial countries tend to have a higher population than the developing countries.
d. the industrial countries are capital intensive countries.
e. the consumption patterns in the industrial countries are more or less similar.