Many health insurers require a deductible where the policyholder pays the first part of any loss. The use of a deductible most directly treats the problem of:
A. moral hazard.
B. people going uninsured.
C. adverse selection.
D. free riding.
Answer: A
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In January 2009, the President submitted a bill to Congress in order to stimulate the economy and increase employment. The legislation was passed in March 2009, and the spending occurred from June 2009 to March 2011. As a result
A) the full effect of the fiscal policy change would not be felt until after March 2011 because of the effect time lag. B) the full effect of the fiscal policy change would not be felt until after March 2011 because of the recognition time lag. C) the full effect of the fiscal policy change would be felt by March 2011 because people anticipated the spending and changed their behavior accordingly. D) the full effect of the fiscal policy change would be felt when the last of the funds were spent by the government.
Monetarists
A. argue for the use of discretionary monetary policy. B. contend that government policies have reduced the stability of the economy. C. believe a capitalistic economy is inherently unstable. D. believe the markets in a capitalistic economy are largely noncompetitive.
Which of the following is an automatic stabilizer?
a. Unemployment insurance b. Government spending c. Net taxes d. The interest rate e. The minimum wage set by the government
A nation joining a currency union must subject itself to the ______ policies of the union, which may or may not conform to its own objectives or economic or political values.
A) fiscal B) economic C) monetary D) accounting