If reckless drivers are more likely to buy automobile insurance than safe drivers are
A) a moral hazard has occurred.
B) adverse selection has occurred.
C) the market for insurance is efficient.
D) then automobile insurance will be fairly priced.
B
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The real interest rate is 4 percent a year. When the inflation rate is zero, the nominal interest rate is approximately ________ percent a year; and when the inflation rate is 2 percent a year, the nominal interest rate is approximately ________
percent a year. A) 0; 2 B) 4; 6 C) 6; 8 D) 6; 4
Refer to Table 15.3. Based on the data in the table, fiscal policy in Cordelia is ________ and fiscal policy in Saldinia is ________
A) sustainable; sustainable B) sustainable; unsustainable C) unsustainable; sustainable D) unsustainable; unsustainable
Disney earned a negative economic profit in 2006
Indicate whether the statement is true or false
The number of tomato producers is of no consequence to people who enjoy eating tomatoes
Indicate whether the statement is true or false