An indication that Insurance companies anticipate adverse selection is
a. they do not require a deductible
b. they do not classify clients into different risk types according to their claim history
c. they classify clients into different risk types according to pre-existing conditions
d. they do not require a co-payment
c
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A short contract requires that the investor
A) sell securities in the future. B) buy securities in the future. C) hedge in the future. D) close out his position in the future.
When an economist evaluates a positive statement, he or she is primarily
a. examining evidence. b. acting as a scientist. c. concerned with verifying how the world is. d. All of the above are correct.
According to the accompanying table, Martha has the absolute advantage in making: Time to Make a PieTime to Make a CakeMartha60 minutes80 minutesJulia50 minutes60 minutes
A. cakes. B. neither pies nor cakes. C. both pies and cakes. D. pies.
When a recessionary gap occurs
a. real output exceeds the natural level of output, and unemployment exceeds its natural rate b. real output exceeds the natural level, and unemployment is less than its natural rate c. real output is less than the natural level of output, and unemployment exceeds it natural rate d. real output is less than the natural level of output, and unemployment is less than its natural rate