Which of the following results from patients having better information about their health status than insurers?
a. The principle-agent problem
b. Rational ignorance
c. Adverse selection
d. Externalities
e. The substitution effect
c. Adverse selection
You might also like to view...
The United States has used export subsidies to encourage the exportation of
a. steel. b. agricultural products. c. automobiles. d. computers.
The yield curve is the relationship between the:
a. Real interest rate and expected inflation rate. b. Domestic yield and foreign yield. c. Real yield (i.e., interest rate) and actual inflation. d. Nominal yield and time to maturity of a security. e. Nominal yield on corporate securities and the yield of government securities.
If marginal costs are rising, average total costs must be rising.
Answer the following statement true (T) or false (F)
One of the elements of monopolization is
A. having a significant pricing power due to an accident in the relevant market. B. the possession of monopoly power in the relevant market. C. having a superior product or having a superior business acumen.. D. when only one firm exists in an industry.