Health insurance companies often charge high premiums because ________
A) they expect to attract high-risk individuals
B) they expect to attract risk-averse individuals
C) they expect to attract low-income individuals
D) they expect to attract risk-neutral individuals
A
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A Rolling Stones song goes: "You can't always get what you want." This echoes an important theme from microeconomics. Which of the following statements is the best example of this theme?
A. Consumers must make the best purchasing decisions they can, given their limited incomes. B. Firms in market economies have limited financial resources. C. Workers do not have as much leisure as they would like, given their wages and working conditions. D. Workers in planned economies, such as North Korea, do not have much choice over jobs.
The three categories of federal government expenditures, in addition to government purchases, are
A) interest on the national debt, defense spending, and transfer payments. B) defense spending, Social Security, and Medicare. C) defense spending, budgets of federal agencies, and transfer payments. D) interest on the national debt, grants to state and local governments, and transfer payments.