Why do individuals demand health insurance? Does the health insurance provided through most employers more or less than people would get if purchased on their own? Why
What will be an ideal response?
Individuals primarily demand health insurance to protect themselves against low probability but extremely expensive medical expenses. The type of comprehensive health insurance provided through most employers exceeds the amount that most individuals would purchase on their own because employer contributions to employee health insurance plans are tax deductible. This creates a bias towards the type of comprehensive plans generally employed by employers.
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When a model takes into account the fact that several different generations may coexist simultaneously, this is known as a(n)
A. neoclassical model. B. life-cycle model. C. overlapping generation model. D. crowding-out model.
According to supply-siders
a. there exists a temporary tradeoff between higher inflation and higher output growth. b. there exists a permanent tradeoff between higher inflation and higher output growth. c. there exists no tradeoff between higher inflation and higher output growth. d. there exists a temporary tradeoff between higher inflation and higher output growth during periods of low inflation only.
During the Great Depression of the 1930s, the aggregate demand curve intersected the aggregate supply curve on
a. the horizontal segment of the aggregate supply curve b. the upward-sloping segment of the aggregate supply curve c. the vertical segment of the aggregate supply curve d. both the horizontal and vertical segments e. both the upward-sloping and vertical segments
If a buyer or seller enters into an exchange with another party who has more information, there is
A. symmetric information and moral hazard. B. a negative externality imposed. C. asymmetric information and adverse selection. D. a free-rider problem.