Refer to Scenario 15.2. If the interest rate were 2%, Furry Software should
A) retool the offices.
B) rewire the network.
C) move to Southern California.
D) be indifferent between retooling and rewiring.
E) be indifferent between rewiring and moving.
C
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A provision of the Affordable Care Act states that private insurance companies cannot deny coverage to anyone because of a preexisting medical condition
By offering health insurance to people with preexisting medical conditions, this provision eliminates ________ for both the insurance company and the policy holder, and eliminates ________ for the insurance company. A) moral hazard; asymmetric information B) asymmetric information; adverse selection C) asymmetric information; moral hazard D) adverse selection; moral hazard
The market mechanism provides a financial incentive for firms to minimize the pollution they create
a. True b. False Indicate whether the statement is true or false
If public goods were marketed like private goods, then
A. There would be market failure. B. Public goods would be overproduced. C. The optimal mix of output would occur at the market equilibrium. D. The economy would be outside the production possibilities curve.
The natural rate of unemployment does NOT include which of the following?
A. cyclical unemployment B. seasonal unemployment C. frictional unemployment D. all of these