What is the final outcome if each firm follows its dominant strategy?
a. Each firm makes a profit of $12,000.
b. Each firm makes a profit of $9,000.
c. Each firm makes a profit of $8,800.
d. Each firm makes a profit of $5,400.
c. Each firm makes a profit of $8,800.
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Which of the following is a part of the "employer mandate" provision of the Patient Protection and Affordable Care Act (ACA)?
A) Every firm with more than 3 full-time employees must offer health insurance to its employees and must automatically enroll them in the plan. B) Every resident of the United States must have health insurance that meets certain basic requirements. C) Firms with 50 or more full-time employees must offer health insurance or pay a $3,000 fine to the federal government for every employee who receives a tax credit from the federal government for obtaining health insurance through a health insurance marketplace. D) Small businesses with fewer than 50 employees are exempt from being required to participate in the program.
According to the classical theory of international trade
A) only countries with low wages will export. B) only countries with high wages will import. C) countries with high wages will have higher relative prices of all goods. D) All the above are false.
Property and casualty insurance companies hold the largest share of their assets in
A) long-term government bonds. B) short-term government securities and commercial paper. C) tax-exempt municipal bonds and U.S. government securities. D) medium-term corporate bonds.
By requiring that policyholders pay a deductible on a claim, insurers guard against
a. symmetrical information b. adverse selection c. natural selection d. moral hazard e. the winner's curse