Recall the Application about genetic testing and adverse selection to answer the following question(s).According to the Application, can health insurance companies decline insurance to those who test positive for APOE4, a mutation of a gene that increases the risk for Alzheimer's?
A. Yes, but individuals are not required to divulge to insurance companies the results of APOE4 tests.
B. No, it is illegal to use genetic testing results to determine long-term insurance premiums.
C. Yes, it is required by law that insurance companies use genetic testing results to determine long-term insurance premiums.
D. No, tests for APOE4 is not an exact science, and is used for entertainment purposes only.
Answer: A
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Because prices are slow to move in the short-run, when the Federal Reserve lowers the federal funds rate
A) nominal interest rates rise. B) real interest rates fall. C) inflation falls. D) real interest rates rise.
Assuming a perfectly competitive market implies that households do not need knowledge of qualities and prices of everything available in the market.
Answer the following statement true (T) or false (F)
Suppose a price floor on sparkling wine is proposed by the Health Minister of the country of Vinyardia. What will be the likely effect on the market for sparkling wine in Vinyardia?
A) Quantity demanded will decrease, quantity supplied will increase, and a surplus will result. B) Quantity demanded will increase, quantity supplied will decrease, and a shortage will result. C) Quantity demanded will increase, quantity supplied will decrease, and a surplus will result. D) Quantity demanded will decrease, quantity supplied will increase, and a shortage will result.
The severe oil shortages of the 1970s in the US created:
A. cost push inflation. B. demand pull inflation. C. a recession. D. an increase in the velocity of money.