If the insurance company can correctly anticipate the adverse selection,
a. Only Samantha would buy insurance
b. Only Nadia would buy the insurance
c. Both of them would buy the insurance
d. Neither of them would buy the insurance
a
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If the money supply is $500 and nominal income is $4,000, the velocity of money is
A) 1/20. B) 1/8. C) 8. D) 20.
"Price fixing" is always illegal
Indicate whether the statement is true or false
Carla is spending all her income on only two goods: apples and bananas. The price of an apple is $2 and the price of a banana is $1 . If Carla's marginal utility of an apple is 4 and her marginal utility of a banana is 3, she should consume:
a. more apples and fewer bananas to maximize total utility. b. more bananas and fewer apples to maximize total utility. c. more apples and more bananas to maximize total utility. d. fewer apples and fewer bananas to maximize total utility. e. her current amounts of apples and bananas to maximize total utility.
Refer to Scenario 7.3 below to answer the question(s) that follow. SCENARIO 7.3: Upon graduating with an accounting degree, you open your own accounting firm of which you are the sole employee. To start the firm you passed on a job offer with a large accounting firm that offered you a salary of $60,000 annually. Last year you earned a total revenue of $100,000. Rent and supplies last year were $50,000. Refer to Scenario 7.3. Your annual economic costs are
A. $0. B. $50,000. C. $60,000. D. $110,000.