Which of the following is not an advantage to an insurance company of insuring a large group of people for health insurance?
A) When all group members pay the premium, the problem of adverse selection is reduced.
B) The characteristics of a large group are likely to reflect those of the entire population.
C) When all group members pay the premium, the problem of moral hazard is reduced.
D) It is easier to accurately predict the number of claims for a group than for an individual.
Ans: C) When all group members pay the premium, the problem of moral hazard is reduced.
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The United States economy is
A. the third largest in the world. B. larger than all other national economies combined. C. the second largest in the world, behind Japan. D. the largest in the world.
Which of the following is a major argument of trade optimists?
(a) Industrial policy can increase productivity of developing country manufacturing efficiency. (b) New synthetic substitutes are constantly being discovered and improved. (c) Developing country efficiency would improve with trade liberalization. (d) All of the above.
Which sector consists of services traded for food, shelter, housing or other services?
(a) tertiary (b) secondary (c) primary (d) international
A customs broker or other import consultant can help an importer minimize import duties by ________.
A) bypassing duty rebates available through drawback provisions B) incurring duties by using non-bonded warehouses and foreign trade zones C) maximizing liability by improperly marking an import's country of origin D) valuing products in such a way that they qualify for more favorable duty treatment