Which of the following best illustrates the adverse selection problem?
A) a professional football team that consistently drafts poor players
B) an economic agent who engages in risky behavior once a loan is received
C) an individual who hides a pre-existing condition from a health insurer
D) an individual who experiences a lost of income by not working while attending college
C
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Which of the following is included in M2?
I. money market mutual funds II. small-denomination certificates of deposit A) I only B) II only C) Both I and II D) Neither I nor II
Which of the following are the messengers in a market economy, conveying information about conditions of demand and supply?
a. interest rates b. surpluses c. shortages d. prices
A decrease in the overall price level (or falling prices) is called _____. An extraordinarily high rate of inflation is called _____
Fill in the blank(s) with correct word
In the early 2000s, Chinese officials indicted members of a forgery syndicate that sold several hundred diplomas to high school graduates who needed the diplomas to take employment tests. This situation, where having the certificate of knowledge is more important than the knowledge itself, is known as:
A. the brain drain. B. human capital. C. certification. D. credentialism.