Universal health coverage, lemon laws, and dealer warranties are all examples of tools used to reduce
A. moral hazard.
B. market efficiency.
C. risk premiums.
D. adverse selection.
Answer: D
You might also like to view...
An interest-earning account that can be withdrawn at any time without payment of a penalty is a
A) money market deposit account. B) certificate of deposit. C) savings deposit. D) time deposit.
Studies have shown that drinking one glass of red wine per day may help prevent heart disease. Assume this is true, and favorable weather has increased the grape harvest of California vineyards
In the market for red wine, these two developments would A) increase demand and increase supply, resulting in an increase in the equilibrium quantity and an uncertain effect on the equilibrium price of red wine. B) increase demand and increase supply, resulting in an increase in the equilibrium price and an uncertain effect on the equilibrium quantity of red wine. C) increase demand and decrease supply, resulting in an increase in the equilibrium quantity and a decrease in the equilibrium price of red wine. D) increase demand and increase supply, resulting in an increase in both the equilibrium price and the equilibrium quantity of red wine.
Which of the following would be considered a negative real supply shock?
A) a relaxation of government environmental regulations B) a permanent increase in the price of energy C) a decrease in the money supply D) a decrease in aggregate demand
If foreign residents purchase 30 billion pesos of Mexican assets and Mexican residents purchase 25 billion pesos of foreign assets, then Mexico has a net capital outflow of 5 billion pesos
a. True b. False Indicate whether the statement is true or false