Copayments and deductibles in insurance policies increase moral hazard.
Answer the following statement true (T) or false (F)
False
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Refer to Figure 18.3. In autarky, the maximum amount of scooters that Livonia can produce is
A) 120. B) 100. C) 80. D) 40.
When an oligopoly market is in Nash equilibrium
A) a firm will choose its best pricing strategy, given the strategies that it observes other firms have taken. B) firms will not behave as profit maximizers. C) firms have colluded to set their prices. D) a firm will not take into account the strategies of its rivals.
For each of the following policy options the government can undertake to make the debt sustainable, explain the economic consequences and the resulting change to potential GDP: a. increasing seigniorage b. increasing taxes on wages c
increasing taxes on capital income d. decreasing expenditure on government capital goods e. decreasing expenditure on transfer programs such as Social Security, Medicare, and Medicaid
If there is a sudden jump in the inflation rate, the purchasing power of financial assets will immediately fall
a. True b. False Indicate whether the statement is true or false