Most economists accept the need for a required pension system because
A. economists believe that saving is good for the soul.
B. people will save less than is optimal knowing that they can rely on welfare, and people may not have the information necessary to calculate their correct level of savings.
C. people will save less than is optimal knowing that they can rely on welfare.
D. people may not have the information necessary to calculate their correct level of savings.
Answer: B
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All of the following are part of the "state health insurance marketplaces" provision of the Patient Protection and Affordable Care Act (ACA) except
A) small businesses with fewer than 50 employees are exempt from being required to participate in the program. B) the marketplaces offer health insurance policies that meet certain specified requirements. C) each state is required to establish an Affordable Insurance Exchange. D) low-income individuals are eligible for tax credits to offset the costs of buying health insurance.
Under a market system of resource allocation, the most important limitations on individual freedom of action are imposed by
a. tradition b. the government c. the scarcity of resources d. the stagnation of the economy e. the rigidity of the economy's rules
Adverse selection occurs in the insurance market because:
A. both the buyer and the seller have incomplete information. B. the buyer has more information than the seller. C. the seller has more information than the buyer. D. Any of these could be the cause of adverse selection in insurance market.
Suppose net domestic product is $4.8 billion, net income earned abroad is $0.7 billion, other business income adjustments net of indirect business taxes and transfers are $0.4 billion, and personal income taxes are $0.8 billion. Then, national income equals
A. $6.7 billion. B. $5.9 billion. C. $2.9 billion. D. $3.6 billion.