Use the Following to Answer Questions

question 24

Multiple Choice

Use the following to answer questions:
-(Figure: Seasonally Adjusted Unemployment Rate) Use Figure: Seasonally Adjusted Unemployment Rate.The distance between each labeled point on the horizontal axis is 1 year,and the distance between each labeled point on the vertical axis is 1 percentage point of unemployment.Unemployment was _____ between 1/2001 and 1/2002 and _____ between 1/1999 and 1/2000.

• A) increasing;decreasing
• B) increasing;increasing
• C) decreasing;increasing
• D) decreasing;decreasing

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Definitions:

Moral Hazard

The risk that a party insulated from risk may behave differently than if they were fully exposed to the risk.

Walk-Throughs

Detailed guides or inspections usually performed to assess, explain, or demonstrate procedures or how a series of steps is to be followed.

Adverse Selection

A situation where asymmetric information results in high-risk individuals being more likely to participate in an exchange, leading to a market failure.

Health Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured, often including preventive care, and sometimes dental and vision benefits.