If reckless drivers are more likely to buy automobile insurance than safe drivers are,
A) a moral hazard has occurred.
B) adverse selection has occurred.
C) the market for insurance is efficient.
D) then automobile insurance will be fairly priced.
B
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Answer the following statement(s) true (T) or false (F)
1. The benefit received from using or accessing an environmental good is known as user value. 2. If an individual receives utility from enjoying the view of a mountain range, that mountain range is said to provide indirect user value to the individual. 3. If an individual enjoys swimming in the ocean, the ocean generates existence value to the individual. 4. Stewardship refers to a sense of obligation to future generations to preserve the environment. 5. The approach that estimates benefits according to a technical relationship between a resource and a user of the resource is called the behavioral linkage approach.
What is the Fed's monetary policy instrument?
What will be an ideal response?
To correct a market failure, society typically relies on
a. the market to correct itself b. individual producers' cost-minimization procedures c. the industry policing itself d. the government to either tax, subsidize, or control output directly e. price to reach equilibrium
The BLS reports the U-6 measure of labor underutilization. Which of the following is how it computes U-6?
a. (total unemployed + marginally attached workers)/adult population b. (total unemployed + marginally attached workers + part-time employed for economic reasons)/adult population c. (total unemployed + marginally attached workers)/(labor force + marginally attached workers) d. (total unemployed + marginally attached workers + part time employed for economic reasons)/(labor force + marginally attached workers)