One result of asymmetric information in health insurance markets is

a. an optimal number of insurance policies sold.
b. adverse selection.
c. externalities in consumption.
d. a low marginal benefit of additional information for the buyer of insurance.
e. The principal-agent problem.

B

Economics

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Assume someone organizes all farms in the nation into a single-price monopoly. What is the monopoly's marginal revenue curve?

A) It is a horizontal line at the competitive industry's price. B) It is a line that lies below the new monopoly's demand curve. C) It is a vertical line at the monopoly's chosen output level. D) It is identical to the demand curve for the monopolist's output. E) It is a line that lies above the new monopoly's demand curve.

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Deficits are created by governments running a large debt

a. True b. False Indicate whether the statement is true or false

Economics