Life insurance companies require that prospective policy holders have a medical check?up before the companies will sell the policy because of a(n) ________ problem in which the insured could be ________ than expected.
A. adverse selection; healthy and live longer
B. adverse selection; unhealthy and die sooner
C. moral hazard; unhealthy and die sooner
D. moral hazard; healthy and live longer
Answer: B
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Neoclassical growth theory attributes economic growth to
A) technological change. B) fiscal policy. C) the law of diminishing returns. D) increasing population growth.
Explain why economists abandoned the Humphrey-Hawkins Act of 1978 as target policy
A partnership in which each partner has unlimited liability only for his or her own actions and at least some degree of limited liability for the partnership as a whole.
What will be an ideal response?
According to the above figure for a gasoline market, an increase in the price from $2 to $4 will result in
A. a shortage of 30 million gallons. B. an increase in quantity demanded of 10 million gallons. C. an increase in demand of 20 million gallons. D. an increase in quantity supplied of 20 million gallons.