Which of the following illustrates adverse selection?
a. Individuals sometimes mistakenly buy defective cameras.
b. Individuals will not search for bargains for low cost items.
c. Individuals know a lot about their family health history when they buy insurance.
d. Individuals can choose whether to drive safely or not.
c
Economics
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Chain-weighted measures of real GDP make use of prices from:
A. an unchanging base year. B. a continuously changing base year. C. a base year that is changed approximately every 5 years. D. a base year that is changed approximately every 10 years.
Economics
Imports and Exports
Examine Annex I of the President's 2007 Annual Report on the Trade Agreements Program. (To view this document, the free Adobe Acrobat reader plug-in must be installed in your browser, if you do not have this, you may download it from here.)
Questions:
- Did imports and exports grow faster or slower than U.S. GDP since 1970?
- Why did U.S. imports rise in 2006?
- What happened to the trade deficit in 2006? Why?
- How might the widespread use of the internet affect international trade?
Economics