_____ refers to the situation faced by an insurance plan whose costs steadily increase as worse risks migrate toward it and better risks migrate away
a. Adverse selection
b. Lemons problem
c. Moral hazard
d. Death spiral
D
You might also like to view...
According to supply-side fiscal policy, reducing tax rates on wages and profits will:
a. create demand-pull inflation. b. lower the price level but may trigger a recession. c. result in stagflation. d. reduce both unemployment and inflation.
Which term describes an especially lengthy and deep recession?
a. peak b. depression c. recession d. trough
For competitive firms, the curve that represents the value of marginal product of labor is the same as the demand for labor curve
a. True b. False Indicate whether the statement is true or false
Discuss why policy makers need to have elasticity estimates when proposing new benefit plans. (To be clear: Imagine a President proposing free dialysis versus proposing free dental care.