When a person has health insurance, they often have to pay nothing or very little (called a "copay") to see a doctor. This might result in
A) their being overly healthy.
B) a principal-agent problem.
C) some moral hazard, since people might overuse the benefit.
D) an adverse selection problem.
C
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In the long run, when there is immigration of labor and all domestic factors of production are mobile:
a. resources move out of the laborintensive industry into the other sectors of the economy. b. the excess labor cannot be absorbed into the economy, and eventually workers will seek to emigrate. c. the excess labor is absorbed, but it raises the unemployment rate and drives down wages, and the owners of capital are the clear winners. d. the capitallabor ratio in each industry is unchanged, and the additional labor in the economy is fully employed.
The interest rate affects the goods market through its impact on money demand.
a. true b. false