Adverse selection can occur if:
a. high-risk persons insure themselves more heavily than low-risk persons.
b. high-risk persons claim coverage which cannot be borne by the insurers.
c. high-risk persons do not conceal information from the insurer.
d. high-risk persons make an effort to take less risk in the presence of an insurance cover.
A
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Once you find the opportunity cost of producing one unit of a good, to find the opportunity cost of producing the other good, you must
A) take the inverse. B) do nothing because the opportunity cost for the first good is the same as the opportunity cost for the second good. C) multiply by the total amount produced of the second good. D) divide by the total amount produced of the second good. E) None of the answers is correct.
For baseball card collectors, Babe Ruth baseball cards from 1927 would most likely have a perfectly
A) inelastic demand. B) inelastic supply. C) elastic demand. D) elastic supply.
Pete owns a small store. He has noticed that when he is not at the store monitoring his employees, his revenue goes down. What are two changes Pete could make to wages he pays his employees to correct this problem?
_______________ have been unable to organize a union in any of the foreign-owned factories owned by Honda, Toyota, and Nissan.
A. The United Autoworkers B. The National Education Association C. The International Brotherhood of Teamsters D. The Service Employees International Union