An insurance company is likely to attract customers who want to purchase health insurance because they know better than the company that they are more likely to file a claim on a policy. This situation describes
A) adverse selection.
B) asymmetric information.
C) moral hazard.
D) a premium death spiral.
A
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What is the primary reason exchange rates were overvalued under ISI?
What will be an ideal response?
Which of the following best describes the crowding-out effect?
a. An increase in government expenditures will cause taxes to rise, which will reduce both aggregate demand and output. b. An increase in borrowing by the government will push interest rates upward, which will lead to a reduction in private spending. c. An increase in borrowing by the government will decrease the money supply and, thereby, reduce aggregate demand. d. An increase in government expenditures will cause the general level of prices to fall and, thereby, reduce aggregate demand and output.
When Fitness Team leased a commercial building from Land Co., it meant ______.
a. Fitness Team can use the property for a certain period of time b. Fitness Team owns the property and can transfer possession c. Land Co. becomes a part owner of Fitness Team d. Land Co. gives up all ownership rights to the property
The figure below shows a shift in the production-possibility curve of a country from AB to AC. Here, S1 and C1 are the initial production and consumption points, respectively. S2 and C2 are the final production and consumption points, respectively. Which of the following is illustrated by this figure?
A. A small country experiencing a balanced growth B. A large country experiencing growth biased toward wheat production C. A large country experiencing a balanced growth D. A small country experiencing growth biased toward cloth production