Assume that the riskiest individuals in a given population are the ones most likely to apply for health insurance. In this situation a provider of health insurance faces the problem of ________
A) moral hazard
B) opportunity costs
C) tertiary impedence
D) adverse selection
D
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One reason there is political opposition to international trade is that:
A. not everyone benefits from trade. B. the differences in opportunity costs between countries are small. C. trade does not increase the total value of goods and services produced by a nation. D. the potential gains from specialization and trade are small.
The return-to-entrepreneurship curve is:
A) horizontal. B) vertical. C) downward sloping. D) upward sloping.
Studies of the HPAE confirm the importance of savings and investment in increasing economic growth
Indicate whether the statement is true or false
Refer to the graphs, in which the numbers in parentheses near the AD1, AD2, and AD3 labels indicate the level of investment spending associated with each curve. All figures are in billions. The economy is at point Z on the investment demand curve. Given these conditions, what policy should the monetary authorities pursue to achieve a noninflationary full-employment level of real GDP?
A. Decrease the reserve ratio
B. Decrease the discount rate
C. Sell government securities in the open market
D. Make no change in monetary policy