A person starts practicing poisonous snake charming after signing a contract with a health insurance company. This is an example of
A) moral hazard.
B) adverse selection.
C) signaling.
D) screening.
A
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Other things remaining the same, if a nation's expected return on real estate rises, the demand to hold money:
a. Falls. b. Rises. c. Does not change.
National income is defined as
a. the total income of a nation's permanent residents minus losses from depreciation. b. the income that households and noncorporate businesses receive. c. the total income earned by a nation's permanent residents in the production of goods and services. d. the income that households and noncorporate businesses have left after satisfying all their obligations to the government.
Suppose initially there is no customs union and that the $100 tariff is imposed by the United States. Now, Mexico invests in productive technology and it shifts the Mexican supply curve to SMex. The United States now forms a customs union with Mexico. This will result in a price of _______ and imports of _______.
a. $250; 500 b. $250; 400 c. $150; 600 d. $150; 500
Suppose the Tidy Laundry Detergent Company, which sells 40% of all detergent, is thinking about raising its price. Before Tidy makes the change, they analyze the likely responses of the All-Clean Detergent Company, which sells 35% of all detergent, and Cheerful Detergent Company, which sells 20% of all detergent. Tidy's behavior showsÂ
A. mutual interdependence in pricing decisions. B. nonprice competition. C. difficult entry in oligopolies. D. collusion.