People with hidden health problems are more likely to buy health insurance than other people. As a result, people in average health may observe the high prices of insurance and decide not to buy it. This is an example of
adverse selection.
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A benefit to society of the patent and copyright laws is that those laws
a. help to keep prices down. b. help to prevent a single firm from acquiring ownership of a key resource. c. encourage creative activity. d. discourage the production of inefficient products.
A health maintenance organization where the physicians are salaried employees of the HMO is called:
a. an IPA. b. a network-model HMO. c. a direct-contract HMO. d. a staff-model HMO. e. a group-model HMO
You are considering purchasing a home. You find one that you like but you realize that you will need to obtain a mortgage for $100,000. The mortgage company presents you with two options: a 15-year mortgage at a 6.0% annual rate and a 30-year mortgage at a 6.5% annual rate. What will be the fixed annual payment for each mortgage?
What will be an ideal response?
Government statisticians adjust GDP figures to include estimates of
A. the costs of pollution to society. B. the underground economy. C. child-rearing services provided by stay-at-home parents. D. the value of homemaking (work done within the home).