When firms participate in group health insurance for all employees, it
A) raises rates for everyone, because it brings unhealthy people into the pool.
B) raises rates for unhealthy people.
C) may lower rates for all people to the extent that it keeps healthy people in the pool.
D) prevents unhealthy people from "selecting out," to the detriment of healthy people.
E) increases the amount of information available to insurers about the population.
C
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In Problem 5, in the long run, what is the market price and the quantity of paper produced? What is the number of firms in the market?
What will be an ideal response?
Which of the following best explains why the elasticity of supply of labor for an individual with a Cobb-Douglas utility function (for consumption and leisure) is zero?
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A nation's automakers install new robotic machinery to build cars. Now, cars take only a day to make, and the factories can produce many more cars than before. This is an example of growth caused by:
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The exchange-rate policy of a "crawling peg," adopted by the Chinese government in 2005, means that the government
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