If a state requires all drivers to buy auto insurance, the problem of adverse selection is eliminated
Indicate whether the statement is true or false
TRUE
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Based on the figure above, which of the following factors could lead the demand curve to shift leftward from D0 to D2?
A) a rise in expected future U.S. exchange rate B) a fall in the U.S. exchange rate C) a rise in the U.S. interest rate D) a rise in the U.S. exchange rate E) a fall in foreign interest rates
The key assumption of the Romer model that allows an explanation of sustained growth in output per person is ________
A) technology is nonrivalrous B) the total amount of labor is fixed C) some labor is devoted to producing new technology D) the saving rate is fixed
In the short run, the fixed costs of a firm:
A. must be paid regardless of level of output. B. should be strongly considered in deciding whether to shut down production. C. are zero when quantity produced is zero. D. must be higher than variable costs for the firm.
The principal effect of unemployment insurance on the entire U.S. economy is
a. that it spreads the costs of unemployment. b. that it eliminates the social costs of unemployment. c. that it reduces the social costs of unemployment. d. the reduction in the federal debt.