The cost of group health insurance is lower than if an individual ...

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The cost of group health insurance is lower than if an individual buys a policy on his own because
 
  A) moral hazard costs of a group tend to move to a low average.
  B) insuring a group eliminates the problem of buyers having more information than the seller.
  C) it is easier for the company to deny claims from a large group.
  D) the problem of adverse selection is reduced.

Question 2

What are the transactions that the balance of payments accounts record?
 
  What will be an ideal response?

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Answer to Question 1

D

Answer to Question 2

The current account records payments for imports of goods and services from abroad, receipts from exports of goods and services sold abroad, net interest income paid abroad, and net transfers abroad (such as foreign aid payments). The capital and financial account records foreign investment in the U.S. minus U.S. investment abroad. Any statistical discrepancy is also recorded in the capital account. The official settlements account records the change in U.S. official reserves.