When an individual purchases health insurance and knows more about her family medical history than the insurance company, this is an example of adverse selection
a. True
b. False
Indicate whether the statement is true or false
True
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If the population of a country increases, while GDP remaining constant, then ________
A) income per capita will remain unchanged B) trade deficit will decrease C) gross national product will increase D) income per capita will decrease
Economists consider the effects of free trade on income distribution to be ________ important than the effects on overall welfare because ________
A) less; those who are harmed can be compensated by those who gain B) more; those who are harmed are not compensated by those who gain C) less; the effects on income distribution are minor and inconsequential D) more; the effects on income distribution are major and consequential E) less; the wealthy benefit and only the poor lose
Suppose we are modeling a "closed" economy. The only way its government can obtain more goods and services than it can claim with net tax revenues is for
A) exports to exceed imports. B) imports to exceed exports. C) investment to exceed saving. D) saving to exceed investment.
Institutionalized adults are not considered to be a part of the labor force by the Bureau of Labor Statistics
a. True b. False Indicate whether the statement is true or false