Compared to the case in which a monopoly insurer offers the consumer a contract, if insurance is competitively provided:
a. any moral hazard or adverse-selection problem is alleviated.
b. any moral hazard or adverse-selection problem is worsened.
c. the essence of any moral hazard or adverse-selection problem would not change much.
d. insurers would no longer offer menus of contracts.
c
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In the Historical Perspective "The Corn Laws Controversy in 19th-Century England," the implication of David Ricardo's theory of differential rent is that
a. high rents were the main cause of high food prices in 19th-century England b. price is rent determining; rent is not price determining c. international trade ought to be restricted since it is instrumental in protecting landowners' rents d. land rents are part of the cost of food production e. differential land rents do not exist
Comparing the United States household income distribution to other countries is
a. easy, because data is available for all countries in the world. b. easy, because some countries collect data on expenditures instead of incomes. c. problematic, because international agreements require countries to standardize their income accounting procedures. d. problematic, because countries collect data in different ways.
Economic progress comes primarily through
What will be an ideal response?
Refer to the graph below. If the firm is producing at Q1, the area 0ADQ1 represents:
A. Total costs
B. Total variable costs
C. Total fixed costs
D. Average total costs