Adverse selection arises in insurance markets because
a. insurance buyers have more information than insurance sellers.
b. insurance sellers have more information than insurance buyers.
c. individuals can select which insurance company to patronize.
d. insurance companies can exercise too much control over whom they insure.
a
You might also like to view...
The inflation rate is the
A) difference between the current period CPI and the base period CPI. B) percentage change in the composition of the CPI market basket from the base year to the next year. C) difference in the price level from one year to the next multiplied by 100. D) difference between the base period CPI and the current period CPI. E) percentage change in the CPI from one year to the next year.
If countries where wages are far lower than those in the U.S. manufacture similar but vastly cheaper products, then:
a. U.S. consumers will buy those cheaper products b. U.S. producers will lose customers c. There will be a downward pressure on U.S. wages, and reduced employment d. All of the above statements are true.
Which would be the most accurate statement?
A. Liberals all agree that if we could provide a job for every American who needs one, we could end nearly all poverty within a generation. B. Barbara Ehrenreich and Frances Fox Piven point out that an increasing number of jobs do not pay enough to subsist on. C. Lisabeth and Daniel Schorr believe that poor teenage girls allow themselves to get pregnant so that they could go on welfare. D. Charles Murray faults our economic system for not providing enough well-paying jobs, which, in turn, has led to widespread poverty.
As output increases, average fixed costs:
A. Increase B. Decrease C. Remain constant D. First increase and then decrease