The use of coinsurance clauses and deductibles is an attempt by insurance companies to deal with the problem of:
A. moral hazard.
B. non-payment of premiums.
C. adverse selection.
D. insufficient government regulation.
Answer: A
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Compared to the developing economies, the advanced economies have ________ human capital and ________ physical capital
A) more; more B) more; less C) the same; the same D) less; more E) less; less
Economists refer to the series of induced increases in consumption spending that result from an initial increase in autonomous expenditures as the ________ effect
A) multiplier B) expenditure C) aggregate demand D) consumption
Fred trades 2 tomatoes to Barney in exchange for 1 pumpkin. Fred and Barney both gain from the exchange. We can conclude that, for Barney, the opportunity cost of producing 1 pumpkin is greater than 2 tomatoes
a. True b. False Indicate whether the statement is true or false
Figure 8.8 shows demand, marginal revenue, and costs of an individual duopolist. If the two duopolists have the same costs and split the market equally, each profit-maximizing duopolist will produce and sell a quantity of ________.
A. 1,000 units B. 500 units C. 250 units D. 125 units