Adverse selection in insurance implies that
a. all people face the same risk
b. potential customers facing more risk are no more interested in purchasing insurance
c. people are not risk averse
d. insurers cannot tell the risk levels that different individuals face
d
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MacDougall's test provides evidence that exports are positively related to labor productivity
Indicate whether the statement is true or false
When there are two large open economies, the world real interest rate will be such that
A) desired international lending by one country equals desired international borrowing by the other country. B) desired international lending will be the same in both countries. C) desired international borrowing will be the same in both countries. D) desired international lending and borrowing will be zero in both countries.