People with hidden health problems are more likely to buy health insurance than other people. As a result, people in average health may observe the high prices of insurance and decide not to buy it. This is an example of

Refer to the data. Real GDP for year 5 is:

Assume an economy that makes only one product and that year 3 is the base year. Output and price data for a five-year period are as follows. Answer the question on the basis of these data.

A.  $160.
B.  $49.
C.  $40.
D.  $64.

The marginal benefit from consuming another unit of a good:

A. equals the total benefit obtained from the consumption of all prior units. B. equals the increase in total benefits from consuming the unit. C. must equal the marginal cost or the unit will not be consumed. D. must be less than the marginal cost or the unit will not be consumed.