Relating to the Economics in Practice on Page 356: a Long-Term

question 38

Multiple Choice

Relating to the Economics in Practice on page 356: A long-term study of Huntington's disease patients found that individuals who carry the Huntington's disease genetic mutation are up to five times as likely as the general population to buy long-term care insurance. This is an example of ________ in the health insurance market.

• A) moral hazard
• B) risk-loving
• C) adverse selection
• D) market signaling

Comprehend the concept and implications of a natural monopoly.

Distinguish between monopolies and perfectly competitive firms based on revenue, cost structures, and output decisions.

Identify the characteristics and examples of natural monopolies and their regulation by governments.

Analyze the impact of patents on monopoly power and market competition.

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Definitions:

Visual Learners

Individuals who comprehend and remember information best by seeing or visualizing materials.

Aural

Relating to the ear or the sense of hearing.

Read/Write

The basic literacy skills involving the ability to understand written text and express thoughts in written form.

Kinesthetic Learner

An individual who learns best through carrying out physical activities rather than listening to lectures or watching demonstrations.