Eleanor and her father have identical driving records for the last ten years and neither one has had an accident or insurance claim. Despite that record She pays more for car insurance than he does. What might be the reason for this?
A. Statistical discrimination
B. Adverse selection
C. The law of large numbers
D. The moral hazard problem
Answer: A
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The above table shows the total product of producing baseball hats. The average product of 3 workers is equal to
A) 1.67 baseball hats. B) 6.00 baseball hats. C) 12.78 baseball hats. D) 18.00 baseball hats.
Which of the following is NOT true about the national income identity given by the equation:
A) If CA is positive, national saving finances the purchase of our goods by foreign users. B) If CA is negative, our investment exceeds our national savings. C) A negative CA may imply that foreigners have confidence in the U.S. economy. D) If CA is negative and large, a country risks foreigners owning a large piece of its assets. E) None of the above.
Consumption goods that are produced, but not sold, become investment goods by default
Indicate whether the statement is true or false
Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the short run would be:
A. P1 and Y2. B. P3 and Y1. C. P2 and Y2. D. P2 and Y3.