Adverse selection in the market for health insurance arises because
A) buyers of insurance know more than insurance companies about the likelihood of an illness for which buyers want insurance.
B) the federal government intervenes in insurance markets by controlling prices and reimbursement policies.
C) many insurance companies care more about profits than they do about providing services for their customers in the event of illness.
D) insurance companies are not allowed to charge premiums that are high enough to insure against "worst-case" illness.
A
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Only realized capital gains are included in taxable income.
A. True B. False C. Uncertain
Between 1986 and 1998 the De Beers company controlled the world diamond market. De Beers and its affiliated association of producers restricted diamond sales to maximize profits
De Beers and its association was "the only game in town" and had what is A) a cartel. B) a duopoly. C) monopolistic competitor. D) perfect competitor.
A bank run is:
A. the situation that arises from fear that the bank is in danger of running out of money. B. when all depositors from a single bank demand to withdraw all deposits at once. C. when a bank's reserves are not enough to satisfy all withdrawal demands. D. All of these are true.
The system of grants from one level of government to another is an example of fiscal federalism.
Answer the following statement true (T) or false (F)