The problem of moral hazard in health insurance _____
a. drives up health care costs
b. exacerbates the adverse selection problem
c. can cause individuals to be more careful
d. creates incentives to diet and regular exercise
a
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In the scenario above, as a result of increased advertising, Talbot's average total cost
A) falls by $20 per coat. B) rises by $50 per coat. C) rises by $30 per coat. D) falls by $40 per coat.
The implication of the prisoners' dilemma for a long-run strategy is for firms to
a. Do nothing b. Differentiate your product that competitors cannot imitate c. Figure a way to lower their costs d. Both b and c
Adam Smith revolutionized the way we think about economic growth with his celebrated book called _________ that was published in _________
a. Progress and Poverty; 1890 b. Capital; 1867 c. The Theory of Business Cycles; 1936 d. The Wealth of Nations; 1776 e. The Theory of Economic Growth; 1914
A landlord requiring potential tenants to provide a rental history is an example of:
A. signaling. B. building a reputation. C. screening. D. statistical discrimination.