Which of the following is not an advantage of risk pooling?
A) By insuring large groups as opposed to individuals, health insurance providers reduce adverse selection.
B) It gives very sick people in the group the same access to health care and to pay the same premiums as healthy individuals.
C) Individuals who are insured and therefore do not have to pay the full cost of health care services may be inclined to over-use those services.
D) It is easier for an insurance company to estimate the average number of claims likely to be filed under a group policy than it is to predict the number of claims likely to be filed under an individual policy.
C
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In the United States, the temporary tax surcharge of 1968
A) actually increased consumer spending. B) decreased consumer spending by more than was originally estimated. C) had no impact on consumer spending. D) decreased consumer spending by less than was originally estimated.
If the income elasticity of demand for a Miami Dolphins season ticket is 2.34, then are Dolphins season tickets a normal or an inferior good?
What will be an ideal response?