Laissez-faire is an economic:
A. theorem because it is the logical conclusion of a model with carefully stated relationships among variables.
B. precept because it is the logical conclusion of a model with widely held assumptions.
C. theorem because it is based on deductive analysis of a model that is based on assumptions.
D. precept because it is based on a model and normative judgments about the relevance of the model to the real world.
Answer: D
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Both are ________, with the first referred to as ________ and the second as ________. A) foreign direct investment (FDI) outflows; greenfield; brownfield B) foreign direct investment (FDI) inflows; greenfield; brownfield C) foreign direct investment (FDI) outflows; brownfield; greenfield D) foreign direct investment (FDI) inflows; brownfield; greenfield E) foreign direct investment (FDI); inflows; outflows
Answer the following statements true (T) or false (F)
1) Asymmetric information in the health care market has increased the supply of health care. 2) A moral hazard problem arises in the health care market because health insurance encourages people to overconsume health care. 3) Insurance companies use deductibles and copayments to control increases in the amount of health care demanded. 4) Because employer payments for health insurance are not subject to income or payroll taxes, government in effect provides a subsidy to health care.