The following is an example of adverse selection
a. A majority of those applying for well paid jobs are well qualified
b. More reckless drivers opt for cars with more safety devices
c. Individuals living in less secure neighborhoods want to buy less insurance
d. Individuals with a strong family history of heart diseases opt to buy less insurance
b
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Referring to a production possibilities curve and the goods being compared, depict the economic event. Millions of immigrants came to the United States in the second half of the 19th century to work on the transcontinental railroad (capital goods vs. consumer goods).
A. A movement from a point inside the curve to a point on or near the curve B. A movement from a point on or near the curve to a point inside the curve C. A shift in the entire curve to the right (outward) D. A shift in the entire curve to the left (inward)
Which of the following does a government provide as part of a safety net for the people?
a) general elections every four years b) unemployment compensation c) a stong military defense d) regulation of commerce
Which of the following groups generally has the lowest unemployment rate?
A. High school graduates with no further education. B. College dropouts. C. High school dropouts. D. College graduates.
Related to the Economics in Practice on p. 466: A recent study by economists at Yale University and the University of Chicago suggests that changing retirement plan enrollment options from a(n) ________ system to a(n) ________ system increased pension plan enrollment after three months of work from 65 percent of workers to 98 percent of workers.
A. mandatory; voluntary B. voluntary; mandatory C. "opt-out"; "opt-in" D. "opt-in"; "opt-out"