Charging risk-based insurance premiums is a time-honored principle of insurance management to reduce
A) moral hazard.
B) adverse selection.
C) free riding.
D) principal-agent problems.
B
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A weaker peso, relative to the US dollar, causes the demand for US imports from Mexico to _____ and the demand for US exports to Mexico to_______
a. Increase; Decrease b. Decrease; Increase c. Increase; Increase d. Decrease; Decrease
The money supply will not increase if you deposit $100 given to you on your birthday in your bank account, and the bank holds all $100 of that money as excess reserves
a. True b. False Indicate whether the statement is true or false
A negative demand shock would lead to a decline in both the price level and output in the short run
a. True b. False
If the cross-price elasticity of demand between lettuce and salad dressing is negative, then when the price of lettuce rises, the demand for salad dressing will ________.
A. increase B. become more inelastic C. decrease D. remain the same