Adverse selection occurs when a fully insured person fails to take as many precautions against risk as she would if uninsured
a. True
b. False
Indicate whether the statement is true or false
False
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What is the equation of exchange? How can the equation of exchange be converted into the quantity theory of money?
What will be an ideal response?
All of the following are factors that will shift the demand curve except
A) a change in the price of complementary products. B) a change in the price of substitute products. C) a change in income. D) a change in the price of inputs.
Hurricane Katrina destroyed oil and natural gas refining capacity in the Gulf of Mexico in 2005. This drove up the prices of natural gas, gasoline, and heating oil. This is an example of a
A) supply shock. B) demand shock. C) negative externality. D) depression.
Discuss the three ranges of the aggregate supply (AS) curve. What could cause the AS curve to shift to the left? What impact would a leftward shift of the AS curve have on the economy?