Which practice helps health insurance companies overcome the problem of adverse selection?
A. They sell insurance only to unhealthy people.
B. They sell insurance only to healthy people.
C. They have switched to the experience rating system.
D. All of these.
Answer: C
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The ________ production points on a production possibilities frontier are the points along and inside the production possibilities frontier
A) productively efficient B) allocatively efficient C) attainable D) unattainable
Which of the following is generally true of a monopolistic competitor operating in the long run?
a. price equal to minimum average total cost b. marginal cost exceeds marginal revenue c. marginal revenue exceeds marginal cost d. price exceeds marginal cost
From the Fisher equation we see that the nominal interest rate and expected inflation have:
A. an inverse relationship. B. a relationship which is direct and one-to-one. C. no relationship. D. a relationship which is direct but less than one-to-one.
The basic idea behind a negative income tax is to
A. help local government agencies deliver more services to the poor. B. increase the in-kind income of the poor. C. help the poor get job skills. D. help the poor without destroying incentives to work.