The increase in extremely expensive lifesaving treatments is a primary cause of the rise in health insurance because _____
a. people want to protect against low probability, expensive events
b. people view insurance as a down payment on a predicable event
c. people want to protect against low probability, inexpensive events
d. individuals want to protect themselves from being gouged by doctors who know they need a lifesaving operation
a
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In the simple trade model, what is assumed about labor?
What will be an ideal response?
White-collar jobs guarantee financial security
Indicate whether the statement is true or false
Suppose that the quantity of hamburgers is measured along the vertical axis and that the quantity of popcorn is measured along the horizontal axis. The vertical intercept is 10 hamburgers, and the slope of the budget line is -2. If the price of popcorn
falls from $1 to $0.50, then we know that A) the vertical intercept shifts to 20 hamburgers. B) the vertical intercept shifts to 5 hamburgers. C) the horizontal intercept shifts to 10 bags of popcorn. D) the horizontal intercept shifts to 20 bags of popcorn.
If a customer buys an airline ticket based only on the price of the ticket for a particular destination, then the airline ticket is best regarded as a(n)
A. experience good. B. credence good. C. inferior good. D. search good.