How does the federal government avoid the asymmetric information problem associated with providing health care to people over 65 years of age?
A) Health care is standardized and is the same for all people over 65 years of age.
B) Health insurers rely on the reputation of the covered individuals.
C) Participation in the Medicare program is mandatory for all people over 65 years of age.
D) Health information about people enrolled in the Medicare program is publically available.
C
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The precautionary demand for holding money is when people hold money:
a. instead of near money. b. to transact purchases they expect to make. c. as insurance against unexpected needs. d. to speculate in the stock market. e. to take advantage of changes in interest rates.
If there are economies of scale throughout the relevant output range of production, which is false? a. It is a natural monopoly
b. It is more efficient to have a single firm produce the good. c. It would typically result from a firm's possession of an exclusive patent. d. One large firm can produce at lower cost than two or more smaller firms.