Pirates Have Been Intensely Attacking Ships Off the Shore of Somalia

question 82

Multiple Choice

Pirates have been intensely attacking ships off the shore of Somalia this year. Boat owners have reportedly coughed up more than $30 million in ransom and insurance premiums have shot up. If there is a sudden and unexpected increase in risk, who gains?

• A) insurance companies
• B) the government of Somalia
• C) boat owners who are insured with policies whose price cannot be changed
• D) pirates

Recognize the factors influencing demand and supply in competitive markets.

Grasp the concept of marginal utility and how it guides consumer choices and spending.

Identify the substitution and income effects in response to price changes.

Understand the economic rationale behind gift-giving, theft, and market behaviors.

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Definitions:

Hip Surgery

Surgical operations performed on the hip joint, such as replacement or repair.

Frail

A state of being weak, delicate, or vulnerable, often due to age or illness.

Osteoporosis

A condition characterized by weakened bones, increasing the risk of sudden and unexpected fractures.

Bone Density

A measure of the amount of minerals (mainly calcium and phosphate) contained in a certain volume of bone, used to diagnose and monitor osteoporosis.