Assume health insurance is provided universally by the government. This would
A) force every taxpayer to bear the costs of adverse selection.
B) force every taxpayer to bear the costs of moral hazard.
C) force the government to deal with adverse selection problems.
D) force foreign governments to deal with moral hazard problems.
B
You might also like to view...
If government purchases decreases by $1 million while net taxes are unchanged, then:
A. public saving increases. B. private saving increases. C. public saving decreases. D. public saving does not change.
Which of the following situation would make transaction costs too high to negotiate and therefore the Coase Theorem would not apply?
A. Many people are bothered by pollution in the area B. Many firms are working together to eliminate pollution C. Only a few people are bothered by the pollution in the area D. One firm is the cause of the pollution
In a circular-flow diagram, the saving and taxation "pipes" are carrying
A) injections to firms. B) injections to households. C) leakages from firms. D) leakages from households.
Which of the following groups believes that the economy can achieve full employment without inflation through tax reductions, lower resource prices, and deregulation?
A. Classical school B. Keynesian school C. Supply-side school D. Rational expectations school