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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Which area in the above figure is the deadweight loss if 100 snowboards are produced?
A) A + B + C B) D + E + F C) C + E D) There is no deadweight loss when 100 snowboards are produced.
The expectations theory and the segmented markets theory do not explain the facts very well, but they provide the groundwork for the most widely accepted theory of the term structure of interest rates
A) the Keynesian theory. B) the separable markets theory. C) the liquidity premium theory. D) the asset market approach.
Refer to Table 5.3. Rank the doctor's job choices in order, least risky first
A) Work for HMO, open own practice, do research B) Work for HMO, do research, open own practice C) Do research, open own practice, work for HMO D) Do research, work for HMO, open own practice E) Open own practice, work for HMO, do research
People will consistently sit through terrible movies at the theater instead of leaving early. This behavior makes no sense because it implies people are:
A. not thinking at the margin, which is rational. B. thinking at the margin, instead of focusing on sunk costs. C. ignoring sunk costs, which is irrational. D. focusing on sunk costs, instead of thinking at the margin.