Adverse selection in insurance requires that
a. potential customers face different levels risk
b. potential customers facing more risk are no more interested in purchasing insurance
c. people are not risk averse
d. insurers can tell higher risk people from lower risk people
a
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If a firm's labor input response to a decrease in the wage differs between the short and the long run, we know that more workers will be hired after the initial short run adjustment.
Answer the following statement true (T) or false (F)
Economists define a labor market with only one buyer to be
a. a monopoly b. an oligopoly c. a monopsony d. perfectly competitive e. backward bending
Karl Marx was a supporter of:
(a) Capitalism. (b) Free markets. (c) A command or centralised economy. (d) None of the above.
Which of the following groups would like to see a rise in the value of the dollar vs. the euro?
A. Americans planning a European vacation. B. Exporters of American made tractors and combines. C. Foreign exchange speculators. D. Europeans planning an American vacation.