If all consumers are willing to buy insurance at the zero-profit pooling price, there cannot be a separating equilibrium.
Answer the following statement true (T) or false (F)
False
Rationale: If the low cost consumers prefer a restricted policy at a lower price -- and if the high cost consumers prefer a separating but unrestricted high cost policy to the restricted low cost policy, a separating equilibrium will emerge despite the fact that all consumers would buy at the pooling price if that was all that was offered.
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Which of the following is not considered an ultimate target that the monetary authority attempts to control?
a. Growth in real GDP b. The rate of unemployment c. The rate of inflation d. The money supply
The willingness to pay of buyers' in a market:
A. is represented by the demand curve. B. is represented by the supply curve. C. explains why the demand curve is bowed-out. D. explains why the demand curve is bowed-in.
The natural rate of unemployment is
A. 4 percent. B. determined by the Bureau of Labor Statistics. C. dependent on the business cycle. D. the level where inflation is more or less stable.
The money income of households consists of all the following, except
What will be an ideal response?