Julia is a 28-year-old nonsmoking, non-drinking female of normal weight. Because of adverse selection in health insurance,
A) She will be charged less for her premiums than people who are higher risks.
B) She is less likely to buy health insurance than the average person, because policy premiums are based on expected medical expenditures of people who are less healthy than she is.
C) When she get health insurance, she will be less likely to take care of herself.
D) She must get health insurance early in life, and is likely to lose health insurance if she smokes, drinks to excess, or gains weight.
E) She is more likely than the average person to buy health insurance, because she is more likely to be offered it.
B
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Use the information in the table above to calculate the value of national saving
A) -$15 million B) $40 million C) $25 million D) $20 million
The opportunity cost to the consumer of purchasing and consuming one more unit of a good is called the marginal benefit
Indicate whether the statement is true or false
Suppose you cannot buy information that completely removes the uncertainty from a business decision that you face, but you could buy information that reduces the degree of uncertainty
Based on the discussion in this chapter, the value of this partial information could be determined as the: A) expected outcome under complete certainty minus the expected outcome under the partial information case. B) expected outcome under the partially uncertain case minus the expected outcome under the completely uncertain case. C) utility of the partially certain case minus the utility of the completely certain case. D) We cannot determine the value of information under partial certainty.
Ashley was being treated unfairly by her boss, so she stormed off the job and two days later found another position. For two days, Ashley experienced
a. cyclical unemployment. b. structural unemployment. c. seasonal unemployment. d. frictional unemployment. e. being out of the labor force.