Assume that the riskiest individuals in a given population are the ones most likely to apply for health insurance. In this situation a provider of health insurance faces the problem of ________

A) moral hazard
B) opportunity costs
C) tertiary impedence
D) adverse selection

D

Economics

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The above figure shows the payoff matrix for two firms, A and B, selecting an advertising budget. The firms must choose between a high advertising budget and a low advertising budget. Firm B's dominant strategy

A) does not exist. B) is to copy firm A. C) is to select a high advertising budget. D) is to select a low advertising budget.

Economics

Suppose some firms exit a monopolistic competition industry. We would expect the demand curve of a firm already in the industry to:

A. become more elastic. B. remain the same since entering firms serve other customers in the market. C. shift to the right. D. shift to the left.

Economics