What is one reason car insurance seems much cheaper than health insurance?
A) Health insurance entails more idiosyncratic than systematic risk, and therefore the gains to diversification are more dramatic.
B) Car insurance entails more systematic than idiosyncratic risk, and therefore the gains to diversification are more dramatic.
C) Health insurance entails more systematic than idiosyncratic risk, and therefore there are fewer gains to diversification.
D) Health insurance is manipulated through market power, and car insurance is not.
C
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Refer to Table 4-6. The equations above describe the demand and supply for Aunt Maud's Premium Hand Lotion. The equilibrium price and quantity for Aunt Maud's lotion are $20 and 30 thousand units. What is the value of producer surplus?
A) $600 thousand B) $300 thousand C) $150 thousand D) $30 thousand
Transfer programs that do not tie benefits to contributions are called
a. social insurance programs b. income assistance programs c. health aid programs d. bonus programs e. compensation programs
As discussed in the text, a bank can extend new loans equal to the amount by which its excess reserves increase
a. True b. False Indicate whether the statement is true or false
Figure 10-7
In Figure 10-7, through which point must a horizontal demand curve pass to yield a long-run equilibrium?
a.
A
b.
B
c.
C
d.
All of the above is correct.