Adverse selection in insurance requires that
a. all people face the same risk
b. potential customers facing more risk are no more interested in purchasing insurance
c. people are not risk averse
d. insurers cannot tell higher risk people from lower risk people
d
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Suppose job search has decreased over the last several years. This decrease could be a result of
i. a change in unemployment benefits. ii. a positive structural change. iii. a higher inflation rate. A) i only B) ii only C) i and iii D) i and ii E) ii and iii
Between 1870 and 1900, total land under cultivation
a. increased by roughly 25 percent b. increased by roughly 50 percent. c. more than doubled. d. increased fourfold.
Which of the following is an example of unplanned investment spending?
a. A fall in the sales of Brax Inc.'s leather jackets that leads to an increase in its stock in the warehouses b. An increase in the demand for Martha's blueberry cheesecakes that increases her demand for cheese c. A fall in the demand for Oliver's muffins that forces him to give away his muffins for free d. A seafood restaurant that keeps a few steaks in its stock every week
Table 20-5Year CPI 2015 207 2016 215 10. Refer to Table 20-5. Consider the following values of the consumer price index for 2015 and 2016. The inflation rate for 2016 was equal to
A) 215 percent. B) 21.5 percent. C) 8.0 percent. D) 3.9 percent.