In a single payer model of healthcare, the government pays for all healthcare. Because patients access healthcare at a zero or low cost, the quantity of healthcare services demanded exceeds the quantity provided.
A) Both sentences are false.
B) The first sentence is false; the second sentence is correct.
C) The first sentence is correct; the second sentence is false.
D) Both sentences are correct.
Question 2
You overhear the following in the hallway, Everyone eventually dies, so how can a life insurance company make a profit? Isn't it a losing battle? You will always have to pay the death benefit to your clients You know that life insurance compa
can be profitable. This is because A) the premiums you pay on a life insurance policy are always more than any death benefit, so the insurance company always comes out ahead.
B) older people with a greater probability of dying during the term of a policy are denied any death benefits.
C) the insurance company collects more than enough in premiums today to cover expected benefits payable today.
D) life insurance companies are notorious for cheating clients with fine print policy clauses.
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Growth of Government Spending, 1870–2009
The Malthusian Model