If an individual insurance company tries to offer unemployment insurance, then:

Select one:

a.

it will be in a position to diversify almost all the risks of unemployment.

b.

it will provide greater benefits than the same provided by the government.

c.

it will be able to reap huge profits during an economic boom.

d.

it may not be able to meet all the claims during recession.

e.

there may be an excess supply of insurance during recession.

A commodity is said to be a normal good if:

Select one:

a.

the demand for the good increases with a decrease in income.

b.

the demand for the good increases with an increase in its price.

c.

the demand for the good decreases with an increase in the price of its complement.

d.

the demand for the good decreases with an increase in the price of its substitute.

e.

the demand for the good increases with an increase in income