1. Why are insurance companies unwilling to provide insurance against losses arising from war or‘civil insurrection’?Because the risks are notindependent. If family A has its house bombed, it is more likely that familyB will too.2. Name some other events where it would be impossible to obtain insurance.Against losses on the stock market; against crop losses resulting from drought.102Although indifference curves will normally be bowed in toward the origin, on odd occasions theymight not be. Which of the diagrams correspond to which of the following?(a)X and Y are left shoes and right shoes.(b)X and Y are two brands of the same product, and the consumer cannot tell them apart.(c)X is a good but Y is a ‘bad’ – like household refuse.