If You Do Not Qualify for a Federal Insurance Program

question 21

Multiple Choice

If you do not qualify for a federal insurance program because your income or wealth is too high,that program is characterized by:

• A) adverse selection.
• B) means testing.
• C) moral hazard.
• D) experience rating.

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Definitions:

High Set-up Costs

Initial investments or expenses that are necessary to start a business or manufacturing process, which can act as a barrier to entry for new firms.

Industry

A sector of the economy that produces a specific type of goods or services, characterized by shared production processes or products.

Exclusive Right

A legal provision or agreement granting someone the sole authority to use, sell, or license a product, service, or intellectual property.

Military-industrial Complex

The network of government agencies, armed forces, and private industries involved in the production and supply of military materials and technology.