Adverse selection often occurs in the private health market because, _____________ on average would pay __________ for their health care insurance premiums than for their health care costs.
a. healthier people; more
b. less healthy people; more
c. healthier people; less
d. less healthy people; the same
Answer: a. healthier people; more
Economics
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If the government adopts a "hands off" approach to cost-push inflation in the economy, then in the short run there is likely to be:
A. A rise in real output B. A fall in unemployment C. An inflationary spiral D. A recession
Economics
Another term for shortage is
A. excess demand. B. equilibrium supply. C. excess supply. D. equilibrium demand.
Economics