Which of the following is an example of screening?
a. A lender checks a loan applicants credit history.
b. When an employee purchases group life insurance without taking a physical exam, she knows more about her health than does the insurance company.
c. When someone is considering buying a used car from a dealership, the seller knows the repair history of the car but the potential buyer does not.
d. All of the above are correct.
a
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The value of the accumulated assets of an individual is called
a. the Lorenz coefficient b. the Gini coefficient c. income d. wealth e. quintiles
If the receiver in the "ultimate bargaining game" cares not just about his final wealth level but also about fairness,
A. the allocator will make a one-sided offer. B. the receiver will reject a one-sided proposal. C. the receiver will always receive the full $20. D. the receiver will accept a one-sided offer.