When Dale visits the doctor, Dale does not pay for either the visit or any tests the doctor may order. From this we can infer that Dale must:
A. have first-dollar medical insurance coverage.
B. have a medical insurance policy with a deductible.
C. be underutilizing medical care.
D. be a member of an HMO.
Answer: A
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Because firms can free ride on the research and development of other firms
A) firms choose a level of research and development where the marginal cost of research is above the economy's marginal return of research. B) firms choose a level of research and development where the marginal cost of research is equal to the economy's marginal return of research. C) firms choose a level of research and development where the marginal cost of research is below the economy's marginal return of research. D) firms choose a level of research and development where the marginal cost of research is below the individual firm's marginal return of research.
By the 2000s, investment banks had become significant participants in the secondary market for mortgages
Indicate whether the statement is true or false
If nominal GDP in 2001 is $9 trillion, and 2001 real GDP in 1996 prices is $6 trillion, the GDP deflator price index is
A) 7. B) 100. C) 150. D) 200.
Intermediate targeting the money supply is preferable if there is a(n)
a. increase in the severity of supply shocks. b. unstable money demand function. c. low interest elasticity of money demand. d. difficulty in the measurement of money demand. e. none of the above.