Answer the following questions true (T) or false (F)
1. One consequence of adverse selection in the market for used cars is that most used cars sold will be lemons.
2. Insurance companies use deductibles and coinsurance to reduce moral hazard.
3. Under current U.S. tax laws, individuals do not pay taxes on health insurance benefits they receive from their employers.
1. TRUE
2. TRUE
3. TRUE
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Refer to Table 12.1. Assuming the inflation rate forecast to be accurate, which nation would pay the highest nominal rate of return?
A) Brazil B) South Africa C) Australia D) the United States
Explain why the transactions costs involved with trying to acquire 100 acres of land from one landowner are probably going to be less than the transactions costs involved with trying to acquire 10 acres of land from each of 10 different landowners
What will be an ideal response?