The satisfaction received from using one more unit of a good or service is called
a. opportunity cost
b. opportunity benefit
c. marginal cost
d. marginal benefit.
Ans: d. marginal benefit.
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A provision of the Affordable Care Act states that private insurance companies cannot deny coverage to anyone because of a preexisting medical condition
By offering health insurance to people with preexisting medical conditions, this provision eliminates ________ for both the insurance company and the policy holder, and eliminates ________ for the insurance company. A) moral hazard; asymmetric information B) asymmetric information; adverse selection C) asymmetric information; moral hazard D) adverse selection; moral hazard
The mercantilism policy failed to generate gains from trade for countries which adopted it because of: a. increases in consumer spending
b. high levels of federal debt. c. supply-side shocks from the oil-exporting countries. d. runaway inflation in the U.S. e. retaliations from other countries.
An economy experiencing an expansionary gap: a. operates in an environment in which labor shortages drive up money wages, real wages, and prices. b. has an excess supply of labor due to rising money wages and prices
c. will self-correct as rising money wages decrease faster than rising prices. d. will experience rising money wages and prices but falling real wages. e. will have excessive involuntary unemployment.
If economic fluctuations originate on the supply side,
a. there will be no relationship between unemployment and inflation. b. real wage increases will be necessary to eliminate unemployment. c. inflation and unemployment will be negatively related. d. inflation and unemployment will be positively related.