Author Question: Buying insurance is similar to A) selling risk. B) irrationally avoiding life's risks. C) being ... (Read 67 times)

crazycityslicker · **on:** Jun 29, 2018

Buying insurance is similar to

A) selling risk.
B) irrationally avoiding life's risks.
C) being a free rider.
D) buying risk.

Question 2

The United States uses tax funds to build and repair the interstate highway system and to provide health care services via Medicare. Suppose Medicare services are on the horizontal axis and highway miles are on the vertical axis of a PPF.

If the government decides to reduce funding to Medicare, this change would be shown as A) a shift out of the PPF.
B) the PPF becoming flatter.
C) a movement down along the PPF.
D) a movement up along the PPF.