People who are the most at risk for health problems are the most likely to sign up for health insurance. Health insurance premiums rise to cover the increased costs of these people, whereupon the less at risk drop their health insurance coverage, worsening the problem. This problem is called the
A. health care poverty problem.
B. moral hazard problem.
C. adverse selection problem.
D. health care uncertainty problem.
Answer: C
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When wages or benefits are automatically increased based on the reported inflation rate, it is called the ________ adjustment
A) cost-of-living B) change in imports C) natural flow of money D) change in exports
"Even under flexible exchange rate regime, governments could not be indifferent to the behavior of exchange rates and inevitably surrendered some of their policy autonomy in other areas to prevent exchange rate movements they viewed as harmful to
their economies." Discuss.
If demand is price elastic, a decrease in price results in a(n)
a. decrease in total expenditure on the good b. unfavorable shift in tastes and preferences c. decrease in total cost for the seller d. increase in supply of the good e. increase in total revenue to the seller
The Phillips curve is considered unstable because: a. inflation and unemployment sometimes rise or fall at the same time. b. unemployment has no effect on inflation
c. inflation is related to changes in gross investment. d. the inflation rate becomes constant in the long run.