A life insurance company is likely to require a health examination of a person applying for insurance. This helps reduce the informational problem through the process of:
A. screening.
B. government regulation.
C. signaling.
D. creating an externality.
Answer: A
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The clearing corporation's main role in the futures market is to:
A. provide the underlying assets so the contracts can be created. B. set the market price of the contract. C. act as the counterparty to both sides of the transaction, thereby guaranteeing payment. D. all of the above.
When a good is put onto the global market at a price below the cost to produce it, this is known as
A) the infant-industry argument. B) dumping. C) a quota. D) protection of domestic jobs.
In principle, households ultimately control:
A. businesses. B. both businesses and the government. C. neither businesses nor the government. D. the government.
________ is financed through general revenues.
A. Unemployment compensation B. Medicare C. The SNAP program D. The Social Security system