The cost of group health insurance is lower than if an individual buys a policy on his own because
A) moral hazard costs of a group tend to move to a low average.
B) insuring a group eliminates the problem of buyers having more information than the seller.
C) it is easier for the company to deny claims from a large group.
D) the problem of adverse selection is reduced.
D
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The world trading system combines negotiated agreements that promote trade liberalization called ________ with binding agreements called ________ that block tariff increases
A) fiscal policies; monetary policies B) truces; aggressions C) free trade; enforcement contracts D) levers; ratchets E) wheels; walls
All of the following are reasons for caution when considering investing in emerging markets EXCEPT:
A) in rapidly growing economies, expectations of future growth are already reflected in stock prices. B) economies experiencing rapid growth typically experience a dilution effect. C) fees for investing in funds that specialize in emerging markets tend to be higher than other funds. D) most economists expect the economies of emerging markets to grow more slowly than that of more advanced economies.