Asymmetric information refers to a situation where people who pose the greatest risk to insurers are the ones who buy insurance
Indicate whether the statement is true or false
FALSE
You might also like to view...
Extensive growth is driven by
A) very high savings rates. B) rapid capital accumulation. C) improved multifactor productivity. D) A and B. E) all of the above.
Suppose the current price of a marketable permit to emit one ton of sulfur dioxide is $100 . If the marginal cost for a firm to reduce one ton of sulfur dioxide is $80, then:
a. the firm will buy the permit and emit one more ton of sulfur dioxide. b. the firm will reduce its emissions of sulfur dioxide by one ton. c. the firm will buy the permit and increase its emissions by 20 tons. d. the firm will shut down. e. the firm will be willing to pay up to $200 for a permit.
"Value pricing" stresses the importance of product differentiation
Indicate whether the statement is true or false
Which of the following statements best describes the expected pattern of trade imbalances?
a. The expected pattern of trade imbalances in the world economy has been that low-income economies will run trade surpluses, while middle and high-income economies will run trade deficits. b. The expected pattern of trade imbalances in the world economy has been that low and middle-income economies will run trade surpluses, while high-income economies will run trade deficits. c. The expected pattern of trade imbalances in the world economy has been that high-income economies will run trade surpluses, while low- and middle-income economies will run trade deficits. d. The expected pattern of trade imbalances in the world economy has been that low and high-income economies will run trade surpluses, while middle-income economies will run trade deficits.