The following is an example of adverse selection
a. A majority of those applying for well paid jobs are well qualified
b. More reckless drivers opt for cars with fewer safety devices
c. Individuals living in less secure neighborhoods want to buy more insurance
d. Individuals with a strong family history of heart diseases opt to buy less insurance
c
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Which of the following is an example of a barter system?
(A) Instead of paying for a purchase in Mexico in pesos, you use dollars from the United States. (B) Instead of paying the full amount for a car, you pay 10 percent in cash and the rest in monthly installments. (C) Instead of paying cash for a computer, you use a credit card. (D) Instead of paying rent, you clean the house for the owner.
Refer to the above payoff matrix (in years of sentence) for two people (Bo and Max) charged for robbery. Which of the following is the outcome of the dominant strategy without cooperation?
A) Both Bo and Max confess. B) Both Bo and Max do not confess. C) Bo confesses while Max does not confess. D) Bo does not confess while Max confesses.