An indication that Insurance companies anticipate adverse selection is
a. they do not require a deductible
b. they do not classify clients into different risk types according to their claim history
c. they classify clients into different risk types according to pre-existing conditions
d. they do not require a co-payment
c
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If the selling price of a firm's product is $500 and the estimated average cost of producing this product is $400, what is the firm's markup?
A) 15 percent B) 20 percent C) 25 percent D) 40 percent
What is the shape of the total revenue curve derived from a horizontal demand curve?
A) Horizontal B) Vertical C) U-shaped D) Upward sloping, with a positive slope
An increase in government spending by $100 would, if the MPC = 0.90, result in an increase in real GDP by:
A. $1,000. B. $9,000. C. $900. D. $190.
A good with a unit elastic demand has a:
A. price elasticity equal to -1. B. price elasticity greater than 1. C. perfectly vertical demand curve. D. perfectly horizontal demand curve.