A benefit of deductibles and health savings accounts is that they
A. reduce the moral hazard problem associated with third-party payers.
B. reduce the incomes of physicians.
C. increase the quality of health care.
D. reduce the use of expensive techniques for hopeless cases.
Answer: A
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Suppose a perfectly competitive constant-cost industry is in long-run equilibrium when market demand suddenly increases. What would probably happen to a firm in this industry in the long run?
a. It would experience no change for the original equilibrium b. It would experience a higher equilibrium price c. It would experience a lower equilibrium price d. It would experience the same equilibrium price but would reduce its output e. It would experience higher average total costs and would reduce its output
Bonds are
A) equity. B) equity and debt. C) debt. D) paid dividends.
If a banking system receives an initial deposit of $150,000 and the reserve requirement is 40 percent, the total deposit in the banking system (including the initial deposit) can be expanded by _____
a. $375,000 b. $150,000 c. $60,000 d. $250,000 e. $450,000
According to purchasing-power parity, which of the following necessarily equals the ratio of the foreign price level divided by the domestic price level?
a. the real exchange rate, but not the nominal exchange rate b. the nominal exchange rate, but not the real exchange rate c. the real exchange rate and the nominal exchange rate d. neither the real exchange rate nor the nominal exchange rate