One reason why adverse selection problems arise in the market for health insurance is because
A) sick people are more likely to want health insurance than are healthy people.
B) fewer people are choosing careers in the medical field because of increases in the cost of education.
C) as people live longer, a greater portion of their medical bills will have to be paid by younger generations.
D) advances in medical technology are costly, and drive up the price of medical insurance.
A
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________ account for the largest portion of all firms; ________ account for most of the total revenue received by businesses
A) Proprietorships; partnerships B) Proprietorships; corporations C) Partnerships; corporations D) Corporations; proprietorships
Assume the current interest rate on a one-year bond is 7%, and the interest rate investors expect on the one-year bond one year from now is 3%
According to the expectations hypothesis, the current interest rate (per year) on a two-year bond should be A) 3%. B) 5%. C) 7%. D) 10%.