IBE316quiz4 - IBE316: Economic Policy Quiz #4 Name: ID: 1....

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IBE316: Economic Policy Quiz #4 Name: ID: 1. Benefits received in the future are discounted by a time discount factor because A) they are uncertain. B) the future may never come or may come under unforeseen circumstances. C) a dollar today is worth more than a dollar tomorrow. D) none of the above. 2. A risk premium measures the A) extra rate of return a risky project must earn to make its riskiness acceptable. B) increase in the discount rate necessary for discounting risky costs and benefits over time. C) level of extra benefits a risky project must earn to make its riskiness acceptable. D) excess of expected benefits over their certainty equivalent. 3. Adverse selection in health insurance markets can lead to A) individuals’ choosing to see low quality doctors. B) doctors’ choosing to give excess tests and treatments. C) cherry picking, or cream skimming, among consumers by some insurance companies, leaving a pool of high-risk, high-cost consumers unable to purchase insurance at a reasonable cost. D)
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IBE316quiz4 - IBE316: Economic Policy Quiz #4 Name: ID: 1....

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