An indication that Insurance companies anticipate adverse selection is
a. they do not require a deductible
b. they do not classify clients into different risk types according to their claim history
c. they classify clients into different risk types according to pre-existing conditions
d. they do not require a co-payment
c
You might also like to view...
When marginal tax rates are constant,
A. the change in taxes paid is the same as the change in income. B. the change in taxes paid is greater than the change in income. C. the change in taxes paid is less than the change in income. D. there are no taxes. E. none of these answer options are correct.
Person A argues that government is unnecessary and often does more harm than good. Economist A disagrees. What does economist A --- who believes that there is a legitimate case that can be made for government --- most likely say to support his position?
A) Government almost always does more good than harm. B) Without government, life would be anarchy. C) There are some things that individuals want done that can't get done without government. D) There are better people going into government work than are going into the private sector. E) none of the above
Total utility may be determined by:
A. multiplying the marginal utility of the last unit consumed by the number of units consumed. B. summing the marginal utilities of each unit consumed. C. multiplying the marginal utility of the last unit consumed by product price. D. multiplying the marginal utility of the first unit consumed by the number of units consumed.
When MC is rising, AVC
A. must be rising. B. must be falling. C. may be falling or rising. D. will remain constant.