Adverse selection in competitive insurance markets harms
a. high-risk individuals.
b. low risk individuals.
c. owners of competitive insurance companies.
d. everyone.
b
You might also like to view...
According to the life-cycle hypothesis ________
A) households consume on the basis of their current income and liabilities B) household consumption as a percentage of income varies over one's lifetime C) current income is a function of future income D) cycling to work everyday allows one to live a longer life
The idea behind reciprocity between two trading countries is that they
a. share the gains from trade equally b. eliminate quotas against each other c. eliminate tariffs against each other d. use the same set of trading practices with respect to each other e. agree to retaliate against other trading countries
Which of the following statements is TRUE?
A. Rational ignorance exists only in politics. B. Rational ignorance still leads to an efficient outcome. C. Rational ignorance is bad because it leads to uninformed voters making decisions. D. It never makes sense for individuals to be rationally ignorant.
An increase in aggregate demand will result in inflation.
Answer the following statement true (T) or false (F)