Health insurance companies impose deductibles on policies and co-payments on claims to reduce the problem of adverse selection
Indicate whether the statement is true or false
FALSE
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Refer to the figure below. 
If Column Cruises offers reduced rates, and Row Resorts keeps its rates high, then Row Resorts will earn ________, and Column Cruises will earn ________.
A. 300; 300 B. 10; 500 C. 500; 10 D. 50; 50
A rational choice is one that:
A. allows individuals to reach their goals. B. involves the use of strategic decision making in an effort to reach a goal. C. does not involve self-interested behavior. D. is usually optimized when decision makers are poorly informed about alternatives
Keynes’ law states that:
a. demand creates its own supply. b. when there is supply there will be demand. c. you can only supply what is demanded. d. people create both supply and demand.
Ordinary commercial banks can expand the supply of money by
a. printing up currency when they need it. b. buying and selling government bonds to the general public. c. using a portion of their deposits to extend additional loans. d. reducing their vault cash and increasing their deposits with the Fed.