Relating to the Economics in Practice on page 357: A long-term study of Huntington's disease patients found that individuals who carry the Huntington's disease genetic mutation are up to five times as likely as the general population to buy long-term care insurance. This is an example of ________ in the health insurance market.
A. market signaling
B. risk-loving
C. adverse selection
D. moral hazard
Answer: C
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Which of the following statement is FALSE?
a) disposable income - saving = consumption expenditure b) consumption expenditure + saving = disposable income c) saving = disposable income - consumption expenditure d) consumption expenditure = saving - disposable income
Figure 14.1 shows three aggregate demand curves. A shift from curve AD1 to curve AD0 could be caused by a(n):
A. decrease in the money supply. B. decrease in taxes. C. increase in the price level. D. increase in government spending.
Inventory investment refers to
A) the difference between production and sales in a given year. B) fixed investment. C) nonresidential investment. D) the purchase by firms of new machines.
Milton Friedman's theory of the demand for money
A) is similar to Tobin's portfolio approach to the demand for money. B) includes permanent income as one of the significant variables. C) includes the yields on competing nonmonetary assets. D) All of the above.