Adverse selection problems in health insurance are reduced by all of the following except:
a. requiring physical exams
b. requiring patients to pay higher deductibles.
c. insuring entire groups.
d. by limiting the period of open enrollment in health insurance plans.
b
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What would be the direct effect of a reduction in the U.S. selling price of Japanese-made cars on the U.S. demand for Japanese-made cars?
A) No effect, because price changes affect quantity demanded, not demand. B) The demand would decrease. C) The demand would increase. D) We cannot tell unless we know the elasticities of demand for Japanese-made and American-made cars. E) We cannot tell unless we know whether more cars can be imported from Japan.
If your supplier becomes more profitable
a. you become more profitable by acquiring it b. you become less profitable by acquiring it c. acquiring it will make you more profitable if there are no synergies to exploit d. unless there are synergies to exploit through acquisition, acquiring it will not make you more profitable
When the demand curve shifts, the ____ elastic the supply curve at the initial equilibrium price, the _____ the change in equilibrium price and the ______ the change in equilibrium quantity.
A. more; larger; smaller B. less; larger; smaller C. more; larger; larger D. less; smaller; larger
Refer to the accompanying figure.
This firm's marginal revenue curve would intersect the vertical axis at ________.
A. $20 B. $0 C. $35 D. $70