Adverse selection occurs in the insurance market because:
A. the seller has more information than the buyer.
B. the buyer has more information than the seller.
C. both the buyer and the seller have incomplete information.
D. Any of these could be the cause of adverse selection in insurance market.
B. the buyer has more information than the seller.
Economics
You might also like to view...
Refer to Figure 15-2. If the firm's average total cost curve is ATC1, the firm will
A) suffer a loss. B) break even. C) make a profit. D) face competition.
Economics
A discouraged worker is one who: a. is underqualified for his current job
b. dislikes his current job but is afraid to quit. c. drops out of the labor force because he cannot find a job. d. quits his job because the possibility of advancement was very low. e. is overqualified for his current job.
Economics