An insured person's incentive to behave in ways that raise the probability of a claim is known as:
a. a moral hazard.
b. the lemons problem.
c. the problem of adverse selection.
d. the problem of advantageous selection.
A
Economics
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Firms with a continuous need for working capital financing will probably want to have __________ with a bank
A) credit rationing B) individually negotiated loans C) repurchase agreements D) a line of credit
Economics
Refer to the above figure. Economic profits for this firm are
A) negative and equal to P2bcP3. B) negative and equal to P1bcP2. C) positive and equal to P2bcP3. D) positive and equal to P1abP2.
Economics