1)
Which of the following is not paid for by government funds
raised through taxes or government borrowing?
Workers compensation.
Medicaid.
Unemployment insurance.
Disability insurance.
Social Security.
2)
Which of the following is not an example of moral hazard as the
term is used in the text?
increase in injury claims when workers' compensation benefits
are expanded.
the seeking of insurance coverage by those with pre-existing
medical conditions.
the construction of homes along a storm-prone shoreline in the
belief that government assistance will cover any significant storm
damage.
a large life insurance policy causes the insured to take up
risky "dare-devil" activities.
the "too-big-to-fail" doctrine which would be used to justify
government bailout of large banks might encourage banks to become
large "financial supermarkets".
3)
Which of the following is not true about Lindahl pricing?
It is an idealized but impractical way to determine equilibrium
in a market for public goods.
An obstacle to achieving it is that individuals might be
impelled to conceal their true preferences.
Although marginal cost may not equal marginal benefit for all
individuals, every individual receives a net gain.
There is unanimous agreement with the equilibrium in the sense
that no individual would be motivated to make a change.
1) Which of the following is not paid for by government funds raised through taxes or government borrowing? Workers comp
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