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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Refer to the table above. The opportunity cost per dollar of value added in designing shoes by workers in Eduland is ________
A) $0.25 B) $0.50 C) $4 D) $12
Suppose you were to believe that "money illusion" exists that is as prices and incomes both rise proportionally, people buy more. Which of the following characteristics of demand does that cause you to doubt?
a. demand functions are downward sloping b. demand has a positive vertical intercept c. demand has a positive horizontal intercept. d. demand functions are homogeneous of degree zero.
If the United States is viewed by foreigners as a great nation in which to invest, generating a large inflow of foreign investment, this will cause the United States to run a
a. deficit on the current account. b. surplus on the current account. c. deficit on the capital account. d. deficit on the official reserve account.
In order to maximize profit, a firm that produces its output in two plants will produce the level of total output at which the last unit of output produced adds the same amount to total revenue as to the
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