Which of the following is not an advantage to an insurance company of insuring a large group of people for health insurance?
A) When all group members pay the premium, the problem of adverse selection is reduced.
B) The characteristics of a large group are likely to reflect those of the entire population.
C) When all group members pay the premium, the problem of moral hazard is reduced.
D) It is easier to accurately predict the number of claims for a group than for an individual.
C
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Eli can decide between two jobs. One job is harvesting grapes at a local vineyard. He would earn $8 every hour he works there. He could also earn $7 an hour working as a bagger at the local grocery. Assuming Eli can only choose between these 2 jobs and that the benefits of both jobs are the same. If Eli decides to work at the grocery store as a bagger the opportunity cost every hour he decides to work at the grocery is:
A. more than $8. B. less than $8. C. exactly $8. D. exactly $7.
One way to measure national debt over time is relative to: a. the cash flow of the banking system
b. the economy's production and income. c. credit sales of consumer durables over a year. d. national home sales in large cities. e. the economy's savings.
The rate of unemployment when the economy is at its potential output is called the:
a. Structural rate of unemployment b. Frictional rate of unemployment c. Natural rate of unemployment d. Full-employment rate of unemployment
The City Council of Happy Village is thinking about imposing rent controls. If they put rent controls in place, which constituency are they trying to please?
A. existing tenants B. landlords C. all taxpayers D. all voters