Refer to the figure below. What would be the impact on the three categories of people if they were given the value of medical insurance in cash instead of having it provided?
In general, we cannot answer this question. In panel A we could expect that this person would
choose to have more insurance. In panel B it is possible for this person to continue with the
same level of coverage but have more of all other goods. In addition, this person could
actually choose to have less insurance. The same thing is possible for the individual in panel
C.
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In the circular flow diagram, aggregate expenditure includes the sum of
A) saving and investment. B) consumption and investment. C) consumption, investment, and saving. D) income and saving.
Several features distinguish hedge funds from traditional mutual funds, including
A) mutual funds have a minimum investment requirement of $1,000 or more; hedge funds have no minimum investment requirement. B) hedge funds typically charge investors large fees relative to mutual funds. C) hedge fund investors need not commit their money for more than a few weeks at a time, explaining why they pay higher fees. D) hedge funds are significantly less risky relative to mutual funds.