Suppose a health insurance company notes that almost all of its customers are at a high risk of illness or injury. This is an example of:
A. public information.
B. perfect information.
C. a thick market.
D. an adverse selection problem.
Answer: D
You might also like to view...
If an increase in crime causes households to spend money on police and security systems, GDP will rise
Indicate whether the statement is true or false
Economic forecasting has proven no better than the flipping of coins
Indicate whether the statement is true or false
For a perfectly competitive firm, the marginal-revenue product curve is the same as the firm's short run demand for labor curve.
Answer the following statement true (T) or false (F)
Jake is an executive of a major corporation. Boris is a baker. Jake earns a salary ten times as large as the salary Boris earns, and Jake has a much larger oven for baking break. Jake can make a loaf of bread that tastes better than Boris's bread but Boris can bake faster.
A. Jake has an absolute but not comparative advantage over Boris in making bread. B. Jake had a comparative but not absolute advantage over Boris in making bread. C. Jake has an absolute and comparative advantage over Boris in making bread. D. Jake does not have an absolute or comparative advantage over Boris in making bread.