Suppose a health insurance company notes that almost all of its customers are at a high risk of illness or injury. This is an example of:
A. public information.
B. perfect information.
C. a thick market.
D. an adverse selection problem.
Answer: D
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Aggregate expenditure includes consumption spending, planned investment spending, government purchases, and net exports
Indicate whether the statement is true or false
In the following situation the tax system is Taxable income $5,000 $10,000 $20,000 Tax payments $500 $600 $1,600
a. progressive b. proportional c. regressive d. based on the benefits received e. there is insufficient information to answer the question
Like the supply curve for individual goods and services, the aggregate supply curve slopes upward and to the right.
Answer the following statement true (T) or false (F)
If individuals become so discouraged that they stop seeking jobs, then the:
a. Unemployment rate rises and the employment rate falls. b. Unemployment rate falls and employment rate stays the same. c. Unemployment rate falls and the employment rate falls. d. Unemployment rate remains the same and the employment rate stays the same. e. Unemployment rate falls, and the employment rate rises.