The Pre-Existing Condition Insurance Plan is a federally administered part of the Affordable Care Act, and is designed for people with pre-existing medical conditions to obtain insurance. By offering health insurance to all U.S
citizens with pre-existing medical conditions, the Pre-Existing Condition Insurance Plan eliminates ________ for both the insurer and the insured, and eliminates ________ for the issuer of the insurance policy.
A) the principal-agent problem; moral hazard B) adverse selection; the principal-agent problem
C) asymmetric information; adverse selection D) moral hazard; adverse selection
C
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With everything else the same, in the foreign exchange market the
A) larger the value of U.S. exports, the greater is the quantity of dollars demanded. B) lower the exchange rate, the smaller the amount of U.S. exports. C) the lower the exchange rate, the smaller is the expected profit from buying dollars. D) the higher the exchange rate, the cheaper are U.S.-produced goods and services.
Why is it impossible to make everyone better off in the long run by imposing import restrictions?
What will be an ideal response?
The tax brackets in a particular year are 10% on earnings up to $50,000, 20% on earnings from $50,001 to $100,000, 30% on earnings from $100,001 to $150,000, and 40% on earnings over $150,000. If Noelle earns $200,000 this year, what is her total tax?
a. $50,000 b. $65,000 c. $80,000 d. $81,000
An example of a demand shifter is:
A) factor prices. B) technology. C) consumer preferences. D) producer expectations.