Economists have found that some risky behaviors increase and preventative medicine use decreases when individuals in the U.S. turn 65 and qualify for Medicare (public health insurance). This phenomenon is most consistent with which of the following concepts?
a. Moral hazard
b. Time inconsistency
c. Availability bias
d. Confirmation bias
a
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Which of the following would indicate that a tax is regressive?
a. High-income people pay $5,000 . low-income people pay $2,000. b. High-income and low-income people pay $200 each. c. High-income people pay 20 percent of their income in taxes; low-income people pay 10 percent. d. Both high-income and low-income people pay 10 percent of their income in taxes. e. Low-income people are exempt from the tax.
The cost of consumption has two components:
a. the substitution effect and the income effect b. the law of demand and the law of diminishing marginal utility c. the price effect and the income effect d. the money price and the time price e. saving and taxes
If it costs $2,000 to pick up the litter along a highway, then the cost of the externality is:
a. $0. b. more than $0, but less than $2,000. c. $2,000. d. more than $2,000, but finite. e. infinite.
Crazy Cryptography is a software corporation that has 1,000 shares of stock in existence. The corporation has just surprised the market by announcing a new software package that will increase the company's after-tax profit by $500,000 each year, forever. If the interest rate is 8 percent (0.08) per year, by how much will the value of a single share of stock increase?
a. $500.00 b. $6,250.00 c. $5,000.00 d. $10,000.000 e. $8,333.33