An indication that Insurance companies anticipate adverse selection is
a. they do not require a deductible
b. they do not classify clients into different risk types according to their claim history
c. they do not classify clients into different risk types according to pre-existing conditions
d. they require a co-payment
d
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As measured, GDP omits which of the following?
i. Illegal sales of goods and services ii. Changes in the amount of leisure time iii. Household production of goods and services A) i and ii B) ii and iii C) i only D) i, ii, and iii E) i and iii
If a monopolistically competitive firm's marginal cost curve shifts upward, then the amount of output it produces
A) increases. B) stays the same. C) decreases. D) could increase, decrease, or stay the same but more information is needed.
The market-friendly approach to development emphasizes
a. self-interested behavior of public officials in LDCs. b. the dependence of LDCs on former colonial powers. c. the inherent efficiency of markets in developing countries. d. that markets in LDCs fail sometimes and selective interventions can promote economic development.
Firms that set prices equal to marginal costs will usually recover all of their R&D costs
a. True b. False Indicate whether the statement is true or false