How is moral hazard related to health care?
What will be an ideal response?
Moral hazard is affiliated with many insurance systems. A person who is insured will use health care services more than one who is not insured and may engage in a lifestyle that is less healthful than one with less insurance. These create greater costs to the insurance companies and the health care system. Physicians also are more likely to require tests when insurance companies pick up the costs.
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With no change in labor productivity, what would happen to the real wage rate and potential GDP if the population increased?
What will be an ideal response?
In the above figure, the minimum efficient scale of output is
A) 5,000 pounds of coffee. B) 10,000 pounds of coffee. C) 13,000 pounds of coffee. D) 15,000 pounds of coffee.
Gross domestic product (GDP) includes:
a. used goods sold in the current time period. b. only final goods and services. c. foreign goods as well as domestically produced goods. d. intermediate as well as final goods.
For a previously-illegal good, decriminalization will cause
A. demand to become less elastic. B. supply to increase. C. supply to become less elastic. D. price to fall, unambiguously.