As a result of adverse selection problems in the health insurance market, it is likely that over time
A. fewer healthy and unhealthy people will be insured.
B. more healthy people will be insured.
C. fewer unhealthy people will be insured.
D. fewer healthy people will be insured.
Answer: D
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Technological change that increases the marginal productivity of labor in the classical model would cause
a. labor demand, output and the price level to rise. b. labor demand to fall, the price level to fall, and output to rise. d. labor demand, output and employment to rise. c. output to rise but labor demand to fall.
The World Trade Organization (WTO)
a. became, in 1995, the institutionalized and more comprehensive successor to the General Agreement on Tariffs and Trade (GATT) b. was established in 1947 to reduce trade restrictions among 23 member countries c. was established in 1980 to oppose and counteract the policies of the General Agreement on Tariffs and Trade (GATT) d. meets in different countries every few years to analyze each country's trade policies and restrictions e. was an international treaty that expired in 1990
If demand price elasticity measures 2, this implies that consumers would:
a. buy twice as much of the product if the price drops 10 percent. b. require a 2 percent drop in price to increase their purchases by 1 percent. c. buy 2 percent more of the product in response to a 1 percent drop in price. d. require at least a $2 increase in price before showing any response to the price increase. e. buy twice as much of the product if the price drops 1 percent.
If you returned a $5 Federal Reserve note to the Fed, you could receive: a. $5 in silver
b. $5 in gold. c. 5 one-dollar bills. d. 10 one-dollar bills. e. a small gold bar.