Big Health is a large health care insurance provider and offers two types of policies. Policy A has an annual price of $1,000 and a co-pay of $20 (the fee that the policy owner pays when seen by a doctor) and Policy B has an annual price of $500 and a co-pay of $50. Individuals will ________ when they choose a policy and Policy ________ will appeal to healthy individuals who do not plan on
needing extensive health care.
A) self-reveal; A
B) signal; A
C) self-reveal; B
D) signal; B
C) self-reveal; B
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One advantage of a managed float exchange rate system compared to a floating exchange rate system is
A) it allows the exchange rate to reflect demand and supply in the market. B) there is no need for government intervention. C) it allows greater exchange rate stability. D) it eliminates the possibility of depreciation during a recession.
Classical economists
a. argued that the money supply determined aggregate demand. b. regarded monetary policy as unimportant since the quantity of money does not determine the price level. c. believed that the quantity of money influences interest rates and real wages. d. believed that prices would increase more than proportionate to an increase in the money supply.
An industry that generates detrimental externalities will have a marginal social cost higher than the marginal private cost to the industry
a. True b. False Indicate whether the statement is true or false
Two goods are substitutes when:
a. an increase in the supply of one good causes the demand for the other good to decrease. b. an increase in the demand for one good causes the price of the other good to decrease. c. an increase in the price of one good causes the demand for the other good to increase. d. an increase in the price of one good causes the demand for the other good to decrease.