Asymmetric information in the health insurance market causes prices to ________ and the mix of insured customers to become ________ healthy on average.
A. rise; less
B. fall; more
C. rise; more
D. fall; less
Answer: A
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The Heckscher-Ohlin, factor-proportions model lends support to the argument that
A) trade tends to worsen the conditions of unskilled labor in rich countries. B) trade tends to worsen the conditions of owners of capital in rich countries. C) trade tends to worsen the conditions of workers in poor countries. D) trade tends to worsen the conditions of workers in rich countries. E) trade tends to worsen the conditions of highly skilled workers in rich countries.
A change in a third variable not on either axis of a graph is illustrated with a:
a. horizontal or vertical line. b. movement along a curve. c. shift of a curve. d. point of intersection.
In a _____ the outsider buys the shares with debt collateralized by its other assets, and sometimes also by the target's assets
a. merger b. cash tender c. proxy fight d. leveraged buyout
Which of the following statements most likely lies within the realm of microeconomics? a. Unemployment rises during a recession and falls during an expansion
b. A rapid acceleration of the supply of money may create inflation. c. An increase in government spending will increase the aggregate demand for goods and services in the economy. d. An increase in labor costs will increase the additional cost of producing another airplane.