An indication that Insurance companies anticipate adverse selection is
a. they do not require a deductible
b. they do not classify clients into different risk types according to their claim history
c. they do not classify clients into different risk types according to pre-existing conditions
d. they require a co-payment
d
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If price is equal to average variable cost, a perfectly competitive firm breaks even
Indicate whether the statement is true or false
Economists avoid using surveys because people often ______.
a. get confused when filling out surveys b. mislead when filling out surveys c. forget to answer certain questions d. don’t have the time to answer all the questions
A government's debt is increased when it
A. balances is budget. B. runs a surplus. C. buys more bonds. D. runs a deficit.
In Figure 45.2, at the one-employer "company town solution," the number of workers hired will be 
Figure 45.2
A. L'. B. less than L'. C. L*. D. between L' and L*.