In the health insurance market, moral hazard occurs when
A) chronically ill people buy insurance.
B) insured people go to the doctor unnecessarily.
C) patients sue their doctor.
D) chronically ill people refuse appropriate medical treatment.
B
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Refer to Figure 8A.1. When the economy reaches K, total saving is represented by point ________ and depreciation is represented by point ________
A) Y; e B) Y; Y C) e; e D) e; Y
DVD players have become more abundant, and cheaper, over the past few years. Explain the decline in DVD player prices
A) DVD manufacturers have become less interested in trying to maximize their profits. B) The demand curve for DVDs has shifted to the left. C) The supply curve for DVDs has shifted to the right. D) The supply curve for DVDs has shifted to the left.
Because it is the only firm operating in a particular market, a monopolist is guaranteed to earn an economic profit
Indicate whether the statement is true or false
Upon graduating from high school you have a job offer which would provide you with $20,000 in income for the coming year. You have also been accepted to Isaac and Avery college. Tuition for the coming year at I&A college is $15,000 . room and board is $10,000 and you expect that books will cost you $2,000 . What is the opportunity cost of attending I&A college?
a. $37,000 b. $27,000 c. $20,000 d. $32,000 e. $47,000