One reason why adverse selection problems arise in the market for health insurance is because
A) sick people are more likely to want health insurance than are healthy people.
B) fewer people are choosing careers in the medical field because of increases in the cost of education.
C) as people live longer, a greater portion of their medical bills will have to be paid by younger generations.
D) advances in medical technology are costly, and drive up the price of medical insurance.
A
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In performing which of its primary functions does money solve the problem of the double coincidence of wants?
A) medium of exchange B) unit of account C) store of value D) barter system E) money supply
Suppose the government establishes a price support for soybeans. The new government program will tend to
A) decrease the output of soybeans. B) increase the quantity demanded of soybeans. C) decrease the demand for soybeans. D) increase a farmer's opportunity cost of producing other commodities (such as corn), which could be grown on the same land used to grow soybeans. E) do none of the above.
An example of a cost of economic growth is
A) longer life spans. B) political instability. C) alienation. D) increases in illiteracy.
The inputs into production of goods and services that are provided by nature, such as land, rivers, and mineral deposits are called
a. physical capital. b. natural resources. c. human capital. d. technological knowledge.