If insurers charge everyone the same premium based on the average cost of insuring the entire group, _____
a. the poor will drop out because the premiums are too high
b. the middle class individuals will drop out because they can self-insure
c. the healthiest individuals in the market will drop out
d. the sickest individuals in the market will drop out
c
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A German who exchanges euros for dollars in a U.S. airport is
a. contributing to U.S. exports b. lending dollars to Germans c. participating in the foreign exchange market d. engaging in speculative activities e. engaging in illegal activities
Most economists believe that substitution behavior by consumers causes inflation measured by the Consumer Price Index (CPI) to overstate the true rate of inflation
a. True b. False
There are at least ______ factors in addition to price that affect demand.
a. three b. four c. five d. two
Most checkable deposits are insured up to $250,000 by
a. state banking commissions. b. the Federal Reserve Board. c. U.S. Department of the Treasury. d. the Federal Deposit Insurance Corporation.