A protectionist policy restricts free trade.
a. true
b. false
Ans: a. true
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With respect to the health insurance market, what is moral hazard?
A) Moral hazard refers to the actions people take, after they purchase an insurance policy, that make the insurance company worse off. B) Moral Hazard refers to to people who purchase one type of insurance policy when they would have been better off purchasing a different policy. C) Moral Hazard refers to the situation in which a person purchasing an insurance policy takes advantage of knowing more about his health than the insurance company. D) Moral hazard refers to the actions people take before they purchase an insurance policy.
Between September 2013 and September 2014 the number of discouraged workers decreased from 852,000 to 698,000. Assuming the change resulted from discouraged workers starting to make specific efforts to find a job again, this change creates
A) an increase to the U-3 unemployment rate. B) a decrease to the U-3 unemployment rate. C) no change to the U-3 unemployment rate. D) a decrease in the labor force participation rate.
In the short run, a monopolist: a. always suffers an economic loss
b. always earns an economic profit. c. always earns a normal rate of return. d. may make an economic loss, an economic profit, or zero economic profits.
Which of the following happens when oligopolistic firms decide to cooperate? a. Barriers to entry are relaxed. b. Net social welfare increases. c. The same level is produced as in a monopoly
d. Consumer surplus is the same as it would be in a competitive market.