Insurance policies in which each firm pays a different price for medical insurance depending upon the past medical bills of the firm's employees are based upon a(n):
A. experience rating.
B. community rating.
C. asymmetric information rating.
D. adverse selection rating.
Answer: A
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Which of the following will be true if employment grows faster than the population as a whole? a. Output per capita will increase faster than productivity per worker
b. The standard of living will increase. c. Output per capita and productivity per worker will grow at an equal pace. d. Output per worker and productivity per worker will remain unaffected. e. Output per capita will increase at a diminishing rate.
Adaptive expectation is a theory in which people look at current economic changes and adapt their beliefs and behavior almost immediately to such changes
a. True b. False Indicate whether the statement is true or false
Which of the following statements is true?
A) There are more farms today than at the beginning of the 20th century. B) An individual farmer prefers good weather to bad weather, but farmers as a group may prefer bad weather to good weather, especially if the demand for their products is inelastic. C) Income elasticity of demand measures the responsiveness of a change in quantity supplied to changes in income. D) a and b E) b and c
Table 1.3 shows the hypothetical trade-off between different combinations of brushes and combs that might be produced in a year with the limited capacity for Country X, ceteris paribus.Table 1.3Production Possibilities for Brushes and CombsCombinationNumber of combsOpportunity Cost(Foregone brushes)Number of brushesOpportunity Cost (Foregone combs)J4 0NAK3 10 L2 17 M1 21 N0NA23 On the basis Table 1.3, what is gained from producing at point L rather than point K?
A. 17 combs. B. 10 combs. C. 7 brushes. D. 1 brush.