Individuals who are more risk averse
a. buy less insurance
b. buy more insurance
c. are not more or less inclined to buy insurance
d. are philosophically opposed to insurance
b
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One of the most responsive components of investment to changes in interest rates are
a. equipment. b. inventories. c. automobile purchases. d. residential housing. e. none of the above.
Complete the following statement. If the U.S. experience in reforming medical care has taught us anything, one thing is certain - _____.
a. collective action improves efficiency b. providing more people with insurance coverage expands the risk pools and lowers premiums c. increased access to care will reduce spending d. moral hazard is a powerful force e. investment in electronic health records will save money
The income elasticity of demand for a food is unity. A consumer's monthly income is $2,000, of which 20 percent is spent on food. If income doubles, the amount spent on food will be:
A. $400 per month. B. $1,000 per month. C. $500 per month. D. $800 per month.
If you have already signed up for a plan with your cell phone company that gives you 4,000 free minutes for $39.99 per month with a cost of $0.35 per minute for any time exceeding the limit, your marginal cost curve is:
A. horizontal at a marginal cost of zero up to 4,000 minutes. B. horizontal at a marginal cost of zero. C. upward-sloping. D. horizontal at a marginal cost of $0.35.