Adverse selection in insurance requires that
a. all people face the same risk
b. potential customers facing more risk are no more interested in purchasing insurance
c. people are risk averse
d. insurers can tell higher risk people from lower risk people
c
Economics
You might also like to view...
Why is it that the enforcement of contracts by government is so crucial to the conduct of business?
What will be an ideal response?
Economics
Everything else held constant, in the market for reserves, when the demand for federal funds intersects the reserve supply curve on the vertical section, increasing the discount rate
A) increases the federal funds rate. B) lowers the federal funds rate. C) has no effect on the federal funds rate. D) has an indeterminate effect on the federal funds rate.
Economics