All of the following are advantages of risk pooling in the health insurance market except
A) it is easier for an insurance company to estimate the average number of claims likely to be filed under a group policy than it is to predict the number of claims likely to be filed under an individual policy.
B) by insuring large groups as opposed to individuals, health insurance companies reduce adverse selection.
C) individuals who are insured and therefore do not have to pay the full cost of health care services may be inclined to overuse those services.
D) it gives very sick people in the pool the same access to health care and pay the same premiums as healthy individuals.
C
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Which of the following would be an example or result of expansionary fiscal policy in action?
a. an increase in taxation b. a decrease in government purchases c. a budget deficit d. a budget surplus
Which of the following is true?
A) Managed equity funds merely hold stocks in the same proportion they are represented in a broad stock market index such as the Dow Jones Industrials. B) Indexed equity funds generally have lower management and operating costs than managed funds. C) Managed equity funds generally outperform indexed equity mutual funds. D) Indexed equity funds generally engage in more stock trading than managed funds.
Core inflation is all of the following but:
A. a measure of inflation that excludes gasoline and food price changes. B. a measure of inflation that excludes goods with historically volatile price changes. C. the BLS's official measure of changes in prices. D. Both an overall rise in prices in the economy.
Which of the following would most likely cause consumption to increase?
A. the stock market crashes B. a price ceiling is placed on the interest rate that credit card companies can charge C. inflationary expectations rise D. the market for consumer durables becomes saturated