An indication that Insurance companies anticipate adverse selection is
a. they require a deductible
b. they do not classify clients into different risk types according to their claim history
c. they do not classify clients into different risk types according to pre-existing conditions
d. they do not require a co-payment
a
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Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
When marginal revenue equals marginal cost, the firm just "breaks even."
a. True b. False
Which of the following statement(s) best describes scarcity?
a. Even if the budget constraint or a PPF shifts, scarcity remains—just at a different level. b. If the budget constraint shifts, scarcity disappears. c. If a PPF shifts, scarcity disappears. d. Scarcity is not dependent on the budget constraint or a PPF shift.
A budget constraint illustrates the
a. prices that a consumer chooses to pay for products he consumes. b. purchases made by consumers. c. consumption bundles that a consumer can afford. d. consumption bundles that give a consumer equal satisfaction.