Less skillful drivers are more likely to buy auto insurance with lower deductibles. Economists use this as an example of:
A. adverse selection.
B. moral hazard.
C. asymmetric selection.
D. information optimization.
A. adverse selection.
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An example of a public good is national defense services
Indicate whether the statement is true or false
As job opportunities for women and the wages those jobs pay have increased, the opportunity cost of doing housework has ________, so many families have chosen to hire specialists in households chores, such as cleaning services and lawn care services
, because the cost of these specialists is ________ than the cost of the wife (or husband) performing those chores. A) decreased; lower B) increased; higher C) decreased; higher D) increased; lower
A plan that sets targets to cover all major aspects of the national economy is known as a/an _____ plan:
(a) interindustry (b) complete (c) comprehensive (d) economic
Foreign aid usually consists of funds loaned at high interest rates
a. True b. False Indicate whether the statement is true or false