Author Question: The problem of adverse selection in health insurance leads to a situation in which A) health ... (Read 54 times)

lracut11

  • Hero Member
  • *****
  • Posts: 536
The problem of adverse selection in health insurance leads to a situation in which
 
  A) health insurance covers inappropriate items for the population it serves.
  B) overinsurance of the premium-paying population occurs.
  C) underinsurance of the premium-paying population occurs.
  D) the percentage of the premium-paying population that is healthy rises, squeezing unhealthy individuals out of the market.
  E) the percentage of the premium-paying population that is unhealthy rises, squeezing healthy individuals out of the market.

Question 2

A firm maximizes profit by operating at the level of output where
 
  A) average revenue equals average cost.
  B) average revenue equals average variable cost.
  C) total costs are minimized.
  D) marginal revenue equals marginal cost.
  E) marginal revenue exceeds marginal cost by the greatest amount.



tennis14576

  • Sr. Member
  • ****
  • Posts: 334
Answer to Question 1

E

Answer to Question 2

D



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

For about 100 years, scientists thought that peptic ulcers were caused by stress, spicy food, and alcohol. Later, researchers added stomach acid to the list of causes and began treating ulcers with antacids. Now it is known that peptic ulcers are predominantly caused by Helicobacter pylori, a spiral-shaped bacterium that normally exist in the stomach.

Did you know?

Tobacco depletes the body of vitamins A, C, and E, which can result in any of the following: dry hair, dry skin, dry eyes, poor growth, night blindness, abscesses, insomnia, fatigue, reproductive system problems, sinusitis, pneumonia, frequent respiratory problems, skin disorders, weight loss, rickets, osteomalacia, nervousness, muscle spasms, leg cramps, extremity numbness, bone malformations, decayed teeth, difficulty in walking, irritability, restlessness, profuse sweating, increased uric acid (gout), joint damage, damaged red blood cells, destruction of nerves, infertility, miscarriage, and many types of cancer.

Did you know?

The first oral chemotherapy drug for colon cancer was approved by FDA in 2001.

Did you know?

Illicit drug use costs the United States approximately $181 billion every year.

Did you know?

Stevens-Johnson syndrome and Toxic Epidermal Necrolysis syndrome are life-threatening reactions that can result in death. Complications include permanent blindness, dry-eye syndrome, lung damage, photophobia, asthma, chronic obstructive pulmonary disease, permanent loss of nail beds, scarring of mucous membranes, arthritis, and chronic fatigue syndrome. Many patients' pores scar shut, causing them to retain heat.

For a complete list of videos, visit our video library