An indication that Insurance companies anticipate adverse selection is
a. they do not require a deductible
b. they do not classify clients into different risk types according to their claim history
c. they do not classify clients into different risk types according to pre-existing conditions
d. they require a co-payment
d
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A change in quantity supplied of a product is the result of a change in
A) the price of the product. B) consumer income. C) the cost of producing the product. D) the state of production technology.
Everything else constant, who is least likely to lose from unexpected inflation?
a. A retired person whose pension payments are fixed in dollars b. A person with a large amount of money deposited in a savings account c. A bank scheduled to receive fixed nominal mortgage payments d. A homeowner scheduled to make fixed nominal mortgage payments e. A consumer who spends extra time shopping for the lowest prices
A vertical demand curve is
A. perfectly inelastic. B. perfectly elastic. C. has elasticity of zero. D. unit elastic.
Average variable cost is a(n) ______ of costs that ______.
a. short-run estimate; do not change when output rises b. long-run measure; decrease when output rises c. per-unit measure; change with the level of output d. accounting summary; do not affect long-run total cost