Insurers try to minimize moral hazard by
a. only selling policies to individuals with high ethical standards.
b. requiring advance payments of premiums.
c. charging higher premiums to individuals than to groups.
d. charging deductibles and coinsurance.
e. refusing to sell insurance to individuals with chronic illnesses.
D
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As a result of a major overhaul of the U.S. welfare system in 1996:
A. Benefits were expanded for immigrants B. Immigrants are denied benefits for their first five years in the U.S. C. Immigrants are denied benefits for their first three years in the U.S. D. More immigrants qualified for welfare benefits
Slope is calculated as a change in the variable on the horizontal axis divided by a change in the variable on the vertical axis
Indicate whether the statement is true or false
Tom spends $20 a month on CDs and magazines. The price of a CD is $6 and the price of a magazine is $4. When Tom maximizes his utility, the marginal utility from CDs is ________ the marginal utility from newspapers
A) the same as B) 1/2 C) 20 times D) 1 1/2 times
In the used car market, the less-informed party is the ________. In the health care market, the less-informed party is the ________.
A. buyer; seller B. seller; buyer C. buyer; government D. seller; government