The income elasticity for cars is high. During the late 1960s, some U.S. citizens experienced a decrease in their real incomes. Consequently, they purchased
(a) more expensive U.S. cars.
(b) more foreign imports due to their relatively low costs.
(c) used U.S. cars in order to avoid foreign imports.
(d) U.S. cars of any type to avoid foreign imports.
(b)
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Which of the following reforms could potentially reduce spending on health care without reducing the effectiveness of health care received?
A) reimburse consumers for preventive health care expenditures so as to avoid costly emergency medical treatments in the future B) give every citizen a fixed amount of money that can only be spent on health care services C) standardize the tax treatment of employer-based health insurance benefits and private spending on health care D) nationalize health care so that all health services are government funded and operated
The nature of contracts changed in the 19th century through judicial instrumentalism and had what effect?
(a) Facilitating free-market determinations of wages and prices. (b) Allowing factory owners to contract with masses of employees for wages, hours and working conditions if the terms were made known and the laborers agreed to them. (c) Advancing the rule of caveat emptor in markets because if a seller unknowingly sold defective goods, the buyer's opportunity to inspect the goods before purchase would ensure the seller's innocence of overt deception. (d) All of the above were effects of the changes to the nature of contracts.
By requiring that policyholders pay a deductible on a claim, insurers guard against
a. symmetrical information b. adverse selection c. natural selection d. moral hazard e. the winner's curse
It has been argued that state-subsidized ____ programs have benefited the poor more than middle and upper-income quintiles
a. Medicaid b. higher education c. art museum d. airport and airline subsidy