Recall the Application about genetic testing and adverse selection to answer the following question(s).According to the Application, what will ultimately happen if genetic testing for certain illnesses like Alzheimer's becomes more common?
A. Only the people who are at high risk for those diseases will purchase insurance against those illnesses.
B. Only the people who are at low risk for those diseases will purchase insurance against those illnesses.
C. The people who are at high risk for those diseases will decline insurance against those illnesses.
D. Only the people who are at high risk for those diseases will be fired from their current jobs.
Answer: A
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In contrast to the need for legal enforcement under a system of direct controls, a taxes approach
A. is subject to greater uncertainty of payment of fees. B. makes taxes automatic and certain. C. speeds the prosecution and conviction process. D. does not actually reduce pollution, merely the cost of monitoring it.
The president of which Federal Reserve Bank is always a voting member of the FOMC? Why?
What will be an ideal response?
At a price of $10 in the above figure, there is
A) a surplus of 200 units. B) a shortage of 200 units. C) a surplus of 400 units. D) a shortage of 400 units.
Suppose there are 100 identical firms producing package delivery services. One of the firms pays a wage rate of $7 and hires 20 delivery workers. The price the firm charges to deliver a package is $10 . We know then that the number of delivery workers in the package delivery industry is
a. 100 workers b. 200 workers c. 700 workers d. 2,000 workers e. 10,000 workers