Bill gets medical insurance and then exercises less. Lilly has health concerns and so applies for medical insurance. Identify each of these as moral hazard or adverse selection
Bill's behavior illustrates moral hazard. Lilly's illustrates adverse selection.
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The gross domestic product of a small country which has a population of 200,000 is $56,000,000. The income per capita of the country is ________
A) $280 B) $200 C) $50 D) $100
In the United States in 2012, the CDC estimated that the total number of people with diabetes (both diagnosed and undiagnosed cases) was lowest for people in the age range of ________, and the percentage of people with diabetes was lowest for people
in the age range of ________. A) 20-44; 20-44 B) 65 and older; 65 and older C) 45-64; 65 and older D) 65 and older; 20-44
An economy growing at a steady rate of 3.1 percent per year doubles in size approximately every __________ years
A) 40 B) 23 C) 32 D) 16
If Ricardian equivalence holds, one way to get the expansionary effects of a tax cut to occur is:
A. pair it with increased government spending. B. pair it with reduced government spending. C. to run a campaign inspiring people to buy goods made in the United States. D. None of these will create the expansionary effects of a tax cut.