Which is a screen against adverse selection
a. Insurance companies require homeowners to have smoke detectors
b. Rearview cameras in cars
c. Installing engine monitors to track driving habits of the insured
d. Prospective secretaries must take a typing test before being hired
d
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Suppose an investor with state-independent tastes is offered the choice between investment A and investment B. Investment A offers profit of $2,000 with probability 0.4, $4,000 with probability 0.2 and $6,000 with probability 0.4. Investment B offers profit of $2,000 with probability of 0.5 and $6,000 with probability 0.5. If the investor is risk averse, he will choose investment A.
Answer the following statement true (T) or false (F)
Roughly how large is the difference between U.S. GDP and U.S. GNP?
A) Less than 0.1% B) About 10% C) About 20% D) About 25% E) About 55%
The Chinese Exclusion Act of 1882 was the first restriction on immigration, in the U.S
a. True b. False Indicate whether the statement is true or false
Which of the following is the opportunity cost of money?
a. The use of money as a means of payment b. The trouble of having to get money out of the bank c. The interest forgone by holding money d. The ability to purchase things at a moment's notice e. Commissions paid to brokers