Which of the following additions to an insurance contract will not act to reduce moral hazard?
A. Co-payments for covered costs.
B. Deductibles for covered costs, that is, the first X dollars of claims are paid by the insured.
C. Cost caps, that is, limitations on total payments that can be made from a claim.
D. Age limitations on who can be insured.
Answer: D
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A) consumption. B) nominal investment. C) depreciation. D) real investment.
When constructing economic models, economists are more concerned with
A) what people say than what they do. B) what people think than what they need. C) what people do than what they say. D) what people say than how they act.
All of the following are aspects of macroeconomics EXCEPT
A. the production decisions of a pharmaceutical firm. B. the U.S. unemployment rate. C. foreign trade. D. the budget deficit of the United States.
Horatio can produce either a combination of 15 bird houses and 25 wind chimes or a combination of 30 bird houses and 15 wind chimes. If he now produces 30 bird houses and 15 wind chimes, what is the opportunity cost of producing an additional 10 wind
chimes? A) 2 bird houses B) 15 bird houses C) 30 bird houses D) 45 bird houses