More generous benefits increase the number of those on welfare as well as the duration.

Select one:

a. Uncertain

b. True

c. False

The social rate of return on education reflects the

Select one:

a. Net benefit of education.

b. Number of courses taken during studies

c. Private and external benefits and costs.

d. Income gains to the individual net of private resource costs.

Some young people may decide not to save for old age, gambling that they will be supported by the public sector when they retire. This is an example of

Select one:

a. Moral hazard.

b. Adverse selection.

c. Strategic thinking.

d. Consumption smoothing.

Public goods are

Select one:

a. Provided publicly only.

b. Subject to the free rider problems.

c. b) and c) are correct.

d. a), b) and c) are correct.

e. Provided privately only.

Low-risk individuals prefer zero health insurance coverage to social insurance.

Select one:

a. False

b. True