Insurance companies try to avoid adverse selection and moral hazard problems through all of the following methods except one. Which is the exception?
a. offering group policies
b. requiring lengthy application forms
c. requiring physical examinations
d. setting uniform premiums (i.e., prices of insurance policies) for all policies
e. requiring policyholders to pay a deductible
D
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Use the figure below to answer the following question.
If a price ceiling in this market is set at P2, then
A. deadweight loss equals area d. B. no deadweight loss occurs. C. deadweight loss equals area h. D. more information is needed to find deadweight loss.
In Figure 3-6 above, at point J
A) there is unplanned inventory investment. B) there is unplanned inventory disinvestment. C) there is no change in inventory levels. D) intended and unintended inventory investment are equal.
Refer to Table 15.2. From the information presented in the table, calculate the following values for the nation of Harmonia in 2012: a. the budget deficit b. the primary budget deficit c. the uses of government funds d
the sources of government funds
Most of the U.S. national debt is owed to ____. Thus a rising national debt implies that there will be a future redistribution of income and wealth in favor of ____.
A. foreigners; foreigners B. other U.S. citizens; bondholders C. foreigners; those needing government services D. other U.S. citizens; those needing government services