The result of the Cutler-Reber study of different insurance plans was
A) increased moral hazard among the insured.
B) increased adverse selection among the insured.
C) asymmetric information was irrelevant among the insured.
D) competition among the insured resulted in higher prices for insurance.
B
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Investments are actions that incur costs in the future but provide expected benefits today
Indicate whether the statement is true or false
Missouri can produce 10,000 tons of pecans per year or 5,000 tons of pears per year. Washington can produce 12,000 tons of pecans per year or 48,000 tons of pears per year
If these two states were to engage in trade, which of the following is TRUE? A) Missouri would specialize in pear production and trade pears to Washington pecans. B) Missouri would specialize in pecan production and trade pecans to Washington for pears. C) Washington would produce both pears and pecans and Missouri would produce neither. D) Half of both Washington's and Missouri's resources would be devoted to pears and the other half to pecans because that is the comparative advantage.
Society's production possibilities frontier
a. helps explain the immense complexity of the real economy b. demonstrates that, although resources are scarce for individuals, there is no problem of scarcity for society as a whole c. is based on unrealistic assumptions and therefore has no value as an economic tool d. is based on simplifying assumptions, but is still useful for illustrating scarcity, opportunity cost, and economic growth e. is based on the assumption that technology is constantly changing
A point or product-combination to the left of and inside a budget line:
A. Is attainable, but a combination or point to the right of the line is unattainable B. Is unattainable, but a combination or point to the right of the line is attainable C. Costs more than a combination or point on the budget line D. Costs more than a combination or point outside the budget line