Probability is sometimes defined as
a. the expected profit of a fair bet.
b. the most likely outcome of a given experiment.
c. the outcome that will occur on average for a given experiment.
d. the relative frequency with which an event will occur.
d
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Which of the following is not related to adverse selection in insurance markets?
a. An insurance company has no way of distinguishing among applicants b. An insurance company must charge a higher price to applicants who are good health risks c. The price of insurance is attractive to poor health risks, but not to good ones d. The insured group becomes less healthy on average e. Because of the relative unhealthiness of the insured group, rates must rise
An unintended effect of a new tax placed on the producers of good A may include
A) a higher price paid by the consumers of good A. B) less consumers' surplus for the buyers of good A. C) fewer workers employed in the production of good A. D) all of the above