Adverse selection:
A. occurs after the parties have entered into an agreement.
B. is about the actions of people.
C. results from unobserved characteristics of people or commodities.
D. All of these statements are true.
Answer: C
You might also like to view...
Profit is the difference between
A) total revenue and total explicit cost. B) total revenue and total cost. C) total revenue and variable cost. D) marginal revenue and marginal cost.
Private ownership and competitive markets are important for economic growth because they provide individuals with a strong incentive to
What will be an ideal response?
Assume a perfectly competitive industry is in long-run equilibrium at a price of $30. If this industry is an increasing-cost industry and the demand for the product increases, long-run equilibrium will be reestablished at a price
A. of $30. B. less than $30. C. greater than $30. D. either greater than or less than $30 depending on the magnitude of the decrease in demand.
Over the past 25 years, child mortality has ________ and literacy has ________ in developed countries.
A. risen; fallen B. fallen; risen C. risen; risen D. fallen; fallen