An indication that Insurance companies anticipate adverse selection is
a. they do not require a deductible
b. they classify clients into different risk types according to their claim history
c. they do not classify clients into different risk types according to pre-existing conditions
d. they do not require a co-payment
b
Economics
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The ability of increasing quantity supplied in response to a higher price is identical across industries
a. True b. False
Economics
In the case of a beneficial externality
a. marginal private cost is below marginal social cost. b. marginal social cost is above marginal private cost. c. marginal social cost and marginal private cost are equal. d. the free market price is below the socially efficient price.
Economics