A provision of the Affordable Care Act states that private insurance companies cannot deny coverage to anyone because of a preexisting medical condition
By offering health insurance to people with preexisting medical conditions, this provision eliminates ________ for both the insurance company and the policy holder, and eliminates ________ for the insurance company. A) moral hazard; asymmetric information
B) asymmetric information; adverse selection
C) asymmetric information; moral hazard
D) adverse selection; moral hazard
B
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In a free-market system, producers will react to an increase in demand when
A. the price goes up. B. the government announces the increased demand. C. their costs increase. D. the free press publishes news of the increased demand.
In a closed economy taxes are $750 billion, government transfers are $400 billion, government expenditures are $500 billion, and investment is $400 billion. What are private saving, public saving and national saving?
Technological improvement always enhances the productivity of resources, and results in an increase in demand for other resources
Indicate whether the statement is true or false
Which of the following is not one of the four broad categories of resources?
A) labor B) government C) capital D) entrepreneurship E) land