Which of the following describes adverse selection in the insurance market?
a. The buyer has more information than the seller about whether they are high or low risk.
b. The buyer behaves in a way they would not behave if they did not have insurance.
c. The seller has more information about whether a buyer is high or low risk.
d. The buyer and the seller know whether the buyer is high or low risk.
a. The buyer has more information than the seller about whether they are high or low risk.
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What is an economic market?
What will be an ideal response?
An economy in which output has decreased and prices have decreased would suggest a:
A. decrease in aggregate demand. B. increase in aggregate demand. C. decrease in short-run aggregate supply. D. increase in short-run aggregate supply.
Suppose the real GDP of Fatonia was $25 million in 2010 . If the population of Fatonia was 0.25 million in 2010, then Fatonia's real GDP per capita was _____ in 2010
a. $200 b. $100 c. $50 d. $150
Most trading in the retail part of the foreign exchange market is trading done among foreign exchange traders at banks.
Answer the following statement true (T) or false (F)