Question

Question 6

At what point in U.S. history was it decided that the government had primary responsibility for seeing that people did not go without basic commodities?

	1.	During the Ronald Reagan presidency.
	2.	During the William Clinton presidency.
	3.	During the Thomas Jefferson presidency.
	4.	During the Franklin Roosevelt presidency.

Question 8

The perceived gain in utility from having insurance coverage can be measured by the value of the loss being insured against.

	1.	premium paid if insurance markets are competitive.
	2.	maximum premium the consumer would pay.
	3.	expected value of the loss being insured against.
	4.	maximum premium the consumer would pay minus the expected

Question 10

Which is not a potential financial problem facing the social security system?

	1.	Life expectancy beyond retirement age has been increasing.
	2.	The ratio of workers to retirees is decreasing.
	3.	The number of retirees is increasing.
	4.	The level of support from general revenues is falling.

Question 11

Adverse selection in health insurance markets can lead to

	1.	individuals’ choosing to see low-quality doctors.
	2.	individuals’ choosing excessive insurance coverage and thus over consuming health care.
	3.	doctors’ choosing to give excess tests and treatments.
	4.	cherry picking, or cream skimming, among consumers by some insurance companies, leaving a pool of high-risk, high-cost consumers unable to purchase insurance at a reasonable cost.

Answer 1

Ans 6) 4. During the Franklin Roosevelt presidency.

Solution- during President tenure of Franklin D. Roosevelt a national welfare system had been established for the first time in American history which ensured that the government had primary responsibility for seeing that people did not go without basic commodities.

Ans 8) 3. expected value of the loss being insured against.

Solution- Economic theory specifies the evaluation of the welfare gain (gain in utility) from insurance products to individuals. To evaluate gain in utility from having insurance, risk preferences and beliefs about loss contingencies of the individual should be known. There is expected value of the loss being insured against that can be compared to the certain insurance premium.

Ans 10) 4. The level of support from general revenues is falling.

Solution- Over the years the The level of support from general revenues is rising and not falling.

Ans 11) 4

cherry picking, or cream skimming, among consumers by some insurance companies, leaving a pool of high-risk, high-cost consumers unable to purchase insurance at a reasonable cost is the problem of adverse selection.

If you found the answer helpful, please upvote the same. It will help me serve you better!