1.A situation in which having insurance causes people to take greater risks is called:

a) Adverse Selection

b) Moral Hazard

c) A mixed market

d) Asymmetric Information

2.Public goods are:

a) Rival and excludable

b) Rival and nonexcludable

c) Nonrival and nonexcludable

d) Nonrival and excludable

3.Which of the following statements is FALSE concerning comparative effectiveness research?

a) The objective is to improve health outcomes by developing and disseminating evidence-based information to patients and providers.

b) Using clinical trials is the least costly and less time-consuming method for conducting comparative effectiveness research

c) The Patient Centered Outcome Research Institute (PCORI) was created under the Affordable Care Act (PPACA) to conduct comparative effectiveness research

d) Using comparative effectiveness research to reduce costs and make coverage decisions can be controversial.

4.Which of the following is a correct statement?

a) Both purely competitive and monopolistic firms are “price takers.”

b) Both purely competitive firms and monopolistic firms are “price makers”

c) A purely competitive firm is a “price-taker” and a monopolistic firm is a “price-maker”

d) A purely competitive firm is a “price-maker” and a monopolistic firm is a “price-taker”

5.The demand curve confronted by the individual purely competitive firm is:

a) Relatively Elastic

b) Perfectly elastic

c) Relatively inelastic

d) Perfectly inelastic