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pup 3002 test 2 Questions with Answers (100%
Correct Answers)
In the United States, what is responsible for managing the supply of money in
the economy? Answer: The Federal Reserve Board
_____ has to do with taxing and spending. Answer: fiscal policy
What is the Nash equilibrium of the Ultimatum game where player 1 starts
with $10 and player 2 starts with $0? Answer: player 1 receives $9 and player 2
receives $1
The increase in the market value of the goods and services produced by an
economy is Answer: economic growth.
Card and Krueger (1994, 2000) studied the effects of minimum wage on
employment in the fast food industry. They found evidence that an increase to
the minimum wage resulted in Answer: an increase in employment.
_____ involves taking from the people who have more income and giving to the
people who do not have enough income. Answer: redistribution
During a recession, the Keynesian solution is for government spending to
Answer: copy
Most people receive _____ in social security benefits compared to the
contributions that they put in. Answer: more
Thousands of experimental studies have put to test the expectations of the
Ultimatum game and reveal that contributions are _____ the model predicts.
a. less than
b. more than
c. exactly what Answer: more than
, 2
During a recession, the Classical solution is for government spending to
a. decrease.
b. increase.
c. remain the same. Answer: decrease
Which of the following best illustrates moral hazard? Answer: A family does
not install a smoke alarm because they have fire insurance.
What is it called when the price of health insurance for an individual is based
on the expected health costs of the larger population within which they live?
Answer: community rating
To correct for moral hazard problems, health insurers use Answer: co-
payments
In a(n) ____ program, recipients must demonstrate evidence of low income as
well as other factors in order to be enrolled. Answer: means tested
The set of individuals covered by an insurance plan is called a Answer: risk
pool
Some scholars argue that health systems developed by nations are ____, with
their current systems resulting from historical circumstances. Answer: path
dependent
The price of health insurance varies from individual to individual based on
characteristics like age, weight, and habits. These characteristics are part of an
individual's Answer: risk profile
What is it called when the consumer pays for some agreed upon proportion of
the bill if they use insurance? Answer: deductible
Supporters of ____, such as the Massachusetts Plan (Romneycare) and the
Patient Protection and Affordable Care Act (Obamacare), point to the need for
required health insurance coverage. Answer: health insurance mandates
pup 3002 test 2 Questions with Answers (100%
Correct Answers)
In the United States, what is responsible for managing the supply of money in
the economy? Answer: The Federal Reserve Board
_____ has to do with taxing and spending. Answer: fiscal policy
What is the Nash equilibrium of the Ultimatum game where player 1 starts
with $10 and player 2 starts with $0? Answer: player 1 receives $9 and player 2
receives $1
The increase in the market value of the goods and services produced by an
economy is Answer: economic growth.
Card and Krueger (1994, 2000) studied the effects of minimum wage on
employment in the fast food industry. They found evidence that an increase to
the minimum wage resulted in Answer: an increase in employment.
_____ involves taking from the people who have more income and giving to the
people who do not have enough income. Answer: redistribution
During a recession, the Keynesian solution is for government spending to
Answer: copy
Most people receive _____ in social security benefits compared to the
contributions that they put in. Answer: more
Thousands of experimental studies have put to test the expectations of the
Ultimatum game and reveal that contributions are _____ the model predicts.
a. less than
b. more than
c. exactly what Answer: more than
, 2
During a recession, the Classical solution is for government spending to
a. decrease.
b. increase.
c. remain the same. Answer: decrease
Which of the following best illustrates moral hazard? Answer: A family does
not install a smoke alarm because they have fire insurance.
What is it called when the price of health insurance for an individual is based
on the expected health costs of the larger population within which they live?
Answer: community rating
To correct for moral hazard problems, health insurers use Answer: co-
payments
In a(n) ____ program, recipients must demonstrate evidence of low income as
well as other factors in order to be enrolled. Answer: means tested
The set of individuals covered by an insurance plan is called a Answer: risk
pool
Some scholars argue that health systems developed by nations are ____, with
their current systems resulting from historical circumstances. Answer: path
dependent
The price of health insurance varies from individual to individual based on
characteristics like age, weight, and habits. These characteristics are part of an
individual's Answer: risk profile
What is it called when the consumer pays for some agreed upon proportion of
the bill if they use insurance? Answer: deductible
Supporters of ____, such as the Massachusetts Plan (Romneycare) and the
Patient Protection and Affordable Care Act (Obamacare), point to the need for
required health insurance coverage. Answer: health insurance mandates
