The following is an example of adverse selection
a. A majority of those applying for well paid jobs are under qualified
b. More reckless drivers opt for cars with fewer safety devices
c. Individuals living in less secure neighborhoods want to buy less insurance
d. Individuals with a strong family history of heart diseases opt to buy less insurance
a
You might also like to view...
Which of the following are characteristics of market based regulations?
A) regulatory tripwires B) monitoring the value of a bank's subordinated debt instruments C) Market traders must have good information about depository institution risk. D) all of the above
The horizontal axis in the AD-AS model shows:
A. the economy's nominal GDP growth rate. B. the economy's short-term interest rate. C. the economy's real GDP growth rate. D. the economy's inflation rate.
Describe five major sources of government failure
Please provide the best answer for the statement.
Which of the following equations is correct?
A. rate of growth of per capita real Gross Domestic Product (GDP) = rate of growth in real GDP + rate of growth of population B. rate of growth in real Gross Domestic Product (GDP) = rate of growth of per capita real GDP - rate of growth of population C. rate of growth in real Gross Domestic Product (GDP) = rate of growth of per capita real GDP - rate of growth of population D. rate of growth of per capita real Gross Domestic Product (GDP) = rate of growth in real GDP - rate of growth of population