One consequence of imperfect information in the health insurance market is that:
A. less healthy individuals are more likely to buy insurance, driving up the cost of insurance for everyone.
B. the most healthy individuals are more likely to buy insurance, leaving the least healthy without access to health care.
C. health insurance increases the demand for health care and so increases the price of health care.
D. unhealthy individuals are denied health insurance.
Answer: A
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Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
Refer to the table above. When the ________ is employed, diminishing marginal returns sets in
A) second worker B) fourth worker C) sixth worker D) eighth worker
All points on the production possibilities curve are:
a. unattainable. b. fair. c. efficient. d. optimal.
Ray just got a raise, and decided to splurge on a fancy dinner to celebrate. The change to Ray's demand for fancy dinners could be measured by the:
A. price elasticity of demand. B. income elasticity of demand. C. price elasticity of supply. D. cross-price elasticity.