An example of a market subject to adverse selection would be:
A. the insurance market.
B. the financial market.
C. the used car market.
D. All of these statements are true.
Answer: D
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Which of the following is an example of a natural experiment?
A) A research on the effectiveness of a new medicine among some voluntary participants B) A study on the benefits of regular exercise by paying for the membership fees at fitness clubs for one-half of the participants C) A laboratory research on the effectiveness of solar power as an alternative source of fuel D) A research on the effect of air pollution on lung disorders by observing the health conditions of people who stay close to industrial areas and those who stay away from industries
In the above figure, a shift in the budget line in the direction indicated would occur as a result of
A) a decrease in money income. B) an increase in money income. C) a fall in the price of a movie. D) a rise in the price of movie.
When economic choice involves an adjustment to an existing situation, marginal analysis
a. has no practical applications or real-world uses b. eliminates incorrect decisions and bad choices c. involves comparing the additional costs and additional benefits of an activity before deciding d. involves examining only the total costs and total benefits of an activity before deciding e. none of the above
According to Matthew Slaughter, as reported in the Case in Point on outsourcing, which of the following is a reason that suggests outsourcing might actually increase domestic employment?
A) Reduced costs make domestic firms more likely to expand the quantities they produce. B) Lower costs may lead firms to increase the scale of their operations which could generate more domestic employment. C) A firm that engages in outsourcing is likely to increase its scope of operations. D) all of the above