If a health economist is worried that a system of health insurance will break down because of the problem of adverse selection, that economist may focus on ________ as a solution to that problem.
A. lowering insurance premiums
B. mandation
C. moral hazard
D. eliminating pre-existing condition clauses
Answer: B
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A friend claims that the United States is a net international debtor. The best way of testing this claim is to see whether
A) U.S. foreign liabilities exceeded U.S. foreign income. B) U.S. receipts from foreign assets exceeded U.S. payments to foreign owners of U.S. assets. C) U.S. official reserve assets were positive or negative. D) the United States ran a balance of payments surplus or deficit last year.
If velocity and output were nearly constant, then
a. the inflation rate would be much higher than the money supply growth rate. b. the inflation rate would be about the same as the money supply growth rate. c. the inflation rate would be much lower than the money supply growth rate. d. any of the above would be possible.
One monopoly that modern central banks have is in:
A. making loans to banks. B. regulating other banks. C. issuing currency. D. issuing U.S. Treasury securities.
Decrease in personal income taxes will ________ the expenditure curve:
A) decrease. B) increase. C) not change. D) none of the above.