If an insurance company underestimates the number of high-cost customers, it is likely to face ________.
A) adverse selection
B) the principal-agent problem
C) moral hazard
D) the bad apple problem
A) adverse selection
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China's growth rate has ________ that of most other countries, ________
A) topped; but its real GDP per person is still lower than other industrialized countries B) lagged behind; and its real GDP is close to other Asian economies C) lagged behind; but its real GDP per person is higher than other Asian economies D) topped: but its real GDP per person declined in 2008-09 E) equaled; and its real GDP per person declined in 2008-09
How does marginal cost change as output increases (a) initially and (b) eventually?
What will be an ideal response?
Labor supply curves are always upward sloping
a. True b. False Indicate whether the statement is true or false
Refer to the accompanying figure. Suppose that the government requires that resources be used efficiently. Which of the following would the government definitely not allow?
A. Production at point D. B. Specialization in medical care production. C. Specialization in warhead production. D. Production at any point other than C.