An example of adverse selection is
a. purchasing a new car sight unseen based on the recommendation of a neighbor.
b. high health-insurance premiums resulting from the poor health of people who buy policies
c. suppliers who charge more for better quality clothing than for lower quality clothing.
d. being talked into buying a low-quality item because the price is lower.
b
Economics
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Which of the following would be considered a fiscal policy action?
A) Spending on the war in Afghanistan is increased to promote homeland security. B) Tax incentives are offered to encourage the purchase of fuel efficient cars. C) A tax cut is designed to stimulate spending during a recession. D) The Fed increases the money supply.
Economics
The largest percent of colonial trade (both exports and imports) was with
(a) the United Kingdom. (b) Southern Europe. (c) Africa. (d) the West Indies.
Economics