Related to the Economics in Practice on page 357: Insurance companies are interested in being legally allowed to obtain the results of genetic testing before deciding on issuing insurance policies to potential buyers, which would lessen the problem of ________ in the health insurance market.
A. risk-loving
B. market signaling
C. adverse selection
D. moral hazard
Answer: C
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All of the following tends to occur when unemployment is above the natural rate EXCEPT:
A) wage increases will be limited B) inflation will rise C) increases in the cost of production will be limited D) there is slack in the labor market
Gross domestic product can be calculated
A) either by valuing the nation's output of goods and services or by valuing the income generated in the production process. B) by adding up the personal consumption of all members of the society. C) by adding up the value of all intermediate goods used in the economy. D) by adding up the income tax returns of all members of the society.
The main area of economic activity that Canada chose not to open to free trade is
A) agriculture. B) oil and gas. C) lumber. D) the cultural industries. E) financial services.
When a large shareholder or a group solicits vote for a slate of directors that it has proposed as an alternative to candidates endorsed by the current board, a(n) _____ takes place
a. acquisition b. proxy fight c. merger d. leveraged buyout