Exam 22: Contemporary Issues in the Us Economy

When positive network effects are present, platform markets exhibit a particular kind of economy of scale.

Facebook and Google were responsible for over 60 percent of digital advertising expenditures in 2017.

A pricing strategy below cost is often claimed to be ________ , done to drive rivals out of business so that the firm can subsequently raise its price back up to the monopoly level.

______________ refers to the fraction of your medical bill that you, rather than your insurer, must cover.

The United States tends to rely more on private health insurance than other countries do.

In the health insurance context, moral hazard occurs when patients make less healthy choices and doctors provide treatments that have little medical benefit because they know the costs will be covered by insurance.

If you have a $50 co-pay, you must pay ____ for each doctor's visit.

Adverse selection in health insurance occurs when those who are less likely to need health care, such as younger and healthier workers, choose not to purchase it.

If you have a policy with 20 percent co-insurance, your insurer will pay ___ percent of your bill, leaving ___ percent for you.

Artificial intelligence (AI)refers to creating and using intelligent machines that work and react like humans.

The United States spends much more on health care per capita than other nations do but does not get better health outcomes.

A deductible is a fixed amount that the insured person must pay before their insurance kicks in.

Both Google and Facebook make their money by charging advertisers to run their ads, and the bigger an audience they have, the more they can charge.

Contingent workers are those who have no regular employment arrangement (such as a 40-hour week), but rather work as and where there is work to be done.

If you have, say, a $2,000 deductible, your insurance will only start paying after you have spent ____ of your own money on health care.

Platform companies may charge low prices on one side not to drive rivals out of business but to expand the market on the other side.

Non-tariff barriers are tools that countries use to restrict trade such as regulatory or legal barriers or slow processing of goods at borders.

Co-pay is a fixed amount that the insured person must pay each time he or she uses health care.

The default rate actually drops as the amount borrowed increases, that is, default rates are highest among those with the smallest student loan debts.

______ has taken on some negative political connotations because more international trade and more immigration inevitably creates some losers as well as many winners.