Adverse selection in insurance requires that
a. all people face the same risk
b. potential customers facing more risk are no more interested in purchasing insurance
c. people are risk averse
d. insurers can tell higher risk people from lower risk people
c
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Dumping goods is profitable whenever:
a. the firm does not get caught. b. the firm can hire illegal workers to process the production. c. the foreign market price (after transportation costs) is higher than marginal cost but lower than the home price. d. the foreign firm eventually closes because it cannot compete.
Which of the following is not included in Nation A's financial account?
a. Foreign deposits of funds in savings accounts in Nation A. b. Purchases and sales of legal and accounting creations. c. Foreign purchases of Nation A's Treasury bills. d. All the above.