Adverse selection in insurance requires that
a. all people face the same risk
b. potential customers facing more risk are more interested in purchasing insurance
c. people are not risk averse
d. insurers can tell higher risk people from lower risk people
b
Economics
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In perfect competition, marginal revenue
A) increases as more is sold. B) decreases as more is sold. C) is equal to the market price. D) is zero. E) is always greater than marginal cost.
Economics
Based on the answer above, the price for Nike shoes_____________ and the quantity demanded for Nike shoes ____________
a. Uncertain; decreases b. Decreases; increases c. Decreases; uncertain d. Increases; uncertain
Economics