Which of the following is an example of screening?
a. a man buys an expensive birthday present for his girlfriend
b. an insurance company offers a policy with a high deductible
c. the seller of a used motorcycle knows more about its true condition than a prospective buyer
d. society supports long prison terms for corporate criminals
b
You might also like to view...
In the recent Global Economic Crisis, all of the following are causes that pushed the IS curve to the left EXCEPT
A) the negative wealth effect from the collapse of the housing bubble. B) the end of cash-out mortgage refinancing. C) growing unwillingness of banks and nonbank financial institutions to grant loan. D) slow and minimal response of the U.S. government.
Asymptotic distribution theory is
A) not practically relevant, because we never have an infinite number of observations. B) only of theoretical interest. C) of interest because it tells you what the distribution approximately looks like in small samples. D) the distribution of statistics when the sample size is very large.