Health insurance companies impose deductibles on policies and copayments on claims to
A) increase prices.
B) increase sales.
C) reduce the moral hazard problem.
D) increase asymmetric information.
C
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With a temporary income tax surcharge, according to the ________, household consumption should ________
A) PIH; fall as disposable income falls B) PIH; rise since the decrease is disposable income is temporary C) LCH; fall since disposable income over the lifecycle falls D) None of the above is correct since a temporary change affects neither permanent income or relative lifecycle earnings.
Which of the following would be classified as private investment?
a. An individual's purchase of a used car b. A family's purchase of groceries c. An individual's purchase of a General Electric bond d. A family's purchase of a newly built home e. A family's purchase of a new car
The long run is
A) over one year. B) over five years. C) when all factors of production are fixed. D) the time period in which all factors of production can be varied.
Desired national saving would increase unambiguously if there were
A. an increase in both expected future output and the expected real interest rate. B. a fall in both government purchases and expected future output. C. an increase in both expected future output and government purchases. D. an increase in both current output and expected future output.