Related to the Economics in Practice on page 357: Insurance companies are interested in being legally allowed to obtain the results of genetic testing before deciding on issuing insurance policies to potential buyers, which would lessen the problem of ________ in the health insurance market.
A. market signaling
B. adverse selection
C. moral hazard
D. risk-loving
Answer: B
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If the Fed sells a T-bill to an individual rather than to a commercial bank, how will this affect the money supply?
A. It will increase the money supply. B. It will increase the checking account balance of the individual. C. It will have no effect on the money supply. D. It will decrease the money supply.
If the supply of dollars in the market for foreign-currency exchange shifts left, then the exchange rate
a. rises and the quantity of dollars exchanged falls. b. rises and the quantity of dollars exchanged does not change. c. rises and the quantity of dollars exchanged rises. d. falls and the quantity of dollars exchanged does not change.
Figure 12.8 depicts an advertising game between two stores. The outcome of the game will be that:
A. both stores choose to advertise. B. both stores choose not to advertise. C. Store A advertises but Store B does not advertise. D. Store B advertises but Store A does not advertise.
________: an amount of money equal to support price time the quantity offered as collateral lent by the Commodity Credit Corporation
Fill in the blank(s) with correct word