Which is a screen against adverse selection
a. Insurance companies require homeowners to have smoke detectors
b. Rearview cameras in cars
c. Installing engine monitors to track driving habits of the insured
d. Prospective secretaries must take a typing test before being hired
d
You might also like to view...
Suppose that choice sets are convex but we tastes may or may not be convex. (Assume all our other usual assumptions about tastes hold.) The first order conditions of the constrained utility maximization problem are then
A. necessary conditions for a true optimum. B. sufficient conditions for a true optimum. C. necessary and sufficient conditions for a true optimum. D. none of the above.
When and under what circumstances is intervention in international trade justified on market correction grounds? What preconditions would have to be met from the government side for there to be a reasonable likelihood of success?
What will be an ideal response?
When the money market is drawn with the value of money on the vertical axis, a decrease in the price level causes a
a. movement to the right along the money demand curve. b. movement to the left along the money demand curve. c. shift to the right of the money supply curve. d. shift to the left of the money supply curve.
How does the leftward shift of the supply curve in graph 2 affect the individual firm shown in graph 1?
a. It causes the firm’s quantity of sales to decrease.
b. It causes the firm’s product price to increase.
c. It causes the firm to dip below its average total cost.
d. It causes the demand for the firm’s products to decrease.