Which of the following best illustrates the adverse selection problem?
A) a professional football team that consistently drafts poor players
B) an economic agent who engages in risky behavior once a loan is received
C) an individual who hides a pre-existing condition from a health insurer
D) an individual who experiences a lost of income by not working while attending college
C
Economics
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The Bank of Techland is the largest bank in Techland. Which of the following is likely to be true if this bank fails?
A) Real interest rates in Techland will fall. B) Labor supply in Techland will fall. C) Real wages in Techland will remain unchanged. D) Techland's output will fall.
Economics
The level of protection from influenza (flu) in a community has characteristics of a public good
Indicate whether the statement is true or false
Economics