What is the benefit to an insurance company of selling health insurance through an employer?
a. High-risk customers are identified and can be charged more.
b. Low-risk customers are identified and can be charged less.
c. High- and low-risk customers are mixed together into a single group.
d. Low-risk customers can opt out of the health insurance plan.
c. High- and low-risk customers are mixed together into a single group.
From an insurance company’s point of view, selling insurance through an employer mixes together a group of people—some with high risks of future health problems and some with lower risks—and thus reduces the insurance firm’s fear of attracting only those who have high risks.
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Which of the following increases the supply of a good and shifts its supply curve rightward?
A) a smaller number of producers B) an increase in the price of the good C) a higher wage paid to workers in the industry D) a technological advance in how the good is produced E) an increase in the cost of the resources used to produce the good
If a monopolist is able to perfectly price discriminate,
a. consumer surplus is always increased. b. total surplus is always decreased. c. consumer surplus and deadweight losses are transformed into monopoly profits. d. the price effect dominates the output effect on monopoly revenue.
Which of the following changes will occur to the market for movie tickets when the price of the tickets rises
A. The demand curve will shift out, causing the price to increase and the quantity to decreases. B. The demand curve will shift out, causing the price to increase and the quantity to increases. C. The demand curve will shift in, causing the price to decrease and the quantity to increases. D. The demand curve will not shift, since the price of the tickets changed. Instead, given the law of demand, the quantity-demanded of the tickets will be reduced.
The more liquid markets are the:
A. higher the interest rates, and the lower the amount of investment. B. higher the interest rates, and the higher the amount of investment. C. lower the interest rates, and the lower the amount of investment. D. lower the interest rates, and the higher the amount of investment.