Asymmetric information in the health insurance market causes prices to ________ and the mix of insured customers to become ________ healthy on average.
A. rise; less
B. fall; more
C. rise; more
D. fall; less
Answer: A
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Equilibrium expenditure occurs when
A) real GDP minus net taxes equals disposable income. B) disposable income equals consumption expenditures plus imports. C) disposable income equals real GDP. D) aggregate planned expenditure equals real GDP. E) real GDP plus net taxes equals disposable income.
A firm's long run cost is the cost of production when the firm
A) calculates its cost at least one year into the future. B) adds together all of its short run costs. C) uses the economically efficient quantities for its plant and its labor. D) can vary the amount of output it produces.
Most empirical studies show that firms' long-run average cost curves:
A. are L-shaped. B. are downward sloping. C. are upward sloping. D. are flat.
If the boat industry produced $20 billion worth of boats, but $50 billion worth of boats were sold to consumers, the decrease in inventory would lead to
a. an increase in the nation's capital b. more individuals investing in the automobile market c. a decrease in the nation's capital stock d. fewer individuals buying cars e. an overestimation of boat production