Which of the following is the best example of a "screen" being used to anticipate the effects of "adverse selection"?
A. Insurance companies require all homeowners to have smoke detectors.
B. A health insurance company creates a single, large "pool" of insureds
C. An auto insurer awards cash rebates to existing policyholders with good driving records.
D. Prospective computer programmers must demonstrate their coding skills in person during the actual job interview.
Answer: Prospective computer programmers must demonstrate their coding skills in person during the actual job interview.
You might also like to view...
India and China represent a great opportunity for U.S. companies because they have
An excise tax levied on a product will impose a larger relative burden on consumers (and a smaller relative burden on sellers) when
a. the supply of the product is relatively inelastic. b. the supply of the product is relatively elastic. c. the demand for the product is relatively inelastic. d. either b or c is true
Suppose the table below describes the relationship between price and quantity demanded for a monopolist.QuantityPrice1$102$93$84$75$66$57$48$3 The marginal revenue of the fifth unit of output is:
A. $2. B. $30. C. -$2. D. $6.
For cartels, as the number of firms (members of the cartel) increases,
a. the monopoly outcome becomes more likely. b. the magnitude of the price effect decreases. c. the more concerned each seller is about its own impact on the market price. d. the easier it becomes to observe members violating their agreements.