Which of the following is a problem that arises in a health insurance market?
A) There are a large number of buyers of various insurance programs.
B) There exists a fierce competition between the insurance providers.
C) A disproportionate number of high-risk individuals are attracted to buy insurance.
D) Only risk-averse individuals buy insurance.
C
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A baker of bread has a long-term fixed-price contract to supply bread. Which of the following would NOT reduce her risk?
A. Hedging this risk in the wheat futures market B. Finding a wheat farmer who will take the short position in a wheat futures contract C. Taking the long position in wheat futures contract D. Finding a wheat farmer who will take the long position in a wheat futures contract
A legal entity that may conduct business in its own name just as an individual does is a(n)
A) corporation. B) entrepreneur. C) proprietorship. D) partnership.
Referring to Figure 19.2, a depreciation of the dollar is represented by a movement from point
A) a to c. B) c to a. C) c to d. D) b to a.
If the bidders at a first-price auction have true values of $8, $7, $6, and $5, the item will sell for
a. $8 b. $7 c. just over $8 d. just under $7