A deductible reduces ________ in exactly the same way as ________
A) moral hazard; coinsurance
B) adverse selection; restrictive provisions
C) moral hazard; cancellation of insurance
D) adverse selection; limits on the amount of insurance
A
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Over time in a growing economy, the long run aggregate supply curve will
A) shift inward to the left. B) shift outward to the right. C) become increasingly stee
Which of the following is correct about comparative advantage?
A) Some countries will have a comparative advantage in everything. B) A country has a comparative advantage in the production of a good if it can produce the good at lower opportunity cost than any other country. C) Having a comparative advantage without an absolute advantage is impossible. D) A comparative advantage in a good means that the country can produce more of the good than any other country. E) None of the above answers is correct.
Critics of advertising argue that it:
A. lowers price by increasing competition. B. results in more variety of products. C. establishes brand loyalty, which promotes competition. D. serves as a barrier to entry for new firms.
Roy just got a big promotion at work which includes a sizable pay increase. Roy's demand for Ramen Noodles, an inferior good, will likely:
A. decrease, and his demand curve will shift to the left. B. increase, and his demand curve will shift to the right. C. decrease, causing a movement down along his demand curve. D. decrease, and his demand curve will shift to the right.