Which of the following tax systems would help reduce income inequality the most?
A) a consumption tax system B) a proportional tax system
C) a progressive tax system D) a regressive tax system
C
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Which of the following should help reduce the adverse selection problem?
A) the employer mandate provision of the Affordable Care Act B) the individual mandate provision of the Affordable Care Act C) keeping high-risk and low-risk individuals in the same health insurance pool D) all of the above
For a linear demand function, slope and the price elasticity of demand are equal
Indicate whether the statement is true or false
The proposition that the amount of goods and services produced in an economy in the long run is not affected by the price level is known as the ________
A) neutrality of money B) classical dichotomy C) quantity theory of money D) Fisher effect E) none of the above
The manager of a large luxury hotel chain is currently negotiating a four year contract with a linens supplier. The linens company will supply fresh laundered bedding and towels to the hotel over a four year period; however, the hotel chain can ends its contract with the linens company at the end of the first, second, or third years if the linens company does not supply quality linens. What can
the manager of the hotel chain do to avoid the end-game problem? A) Inform the linens company that the hotel chain will nominate them for a linens industry award if the linens company provides quality linens all four years. B) Pay the linens company in full at the beginning of the first year. C) Pay the linens company in full after the second year. D) Pay the linens company in full at the end of the third year.