Which of the following is adverse selection?
a. the risk associated with selecting stocks in only a few specific companies
b. the risk that a person will become overconfident in his ability to select stocks
c. a high-risk person being more likely to apply for insurance
d. after obtaining insurance a person having less incentive to be careful
c
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Which of the following is true?
a. All types of environmental problems can be solved merely by the enforcement of individual property rights. b. Environmental regulation cannot improve environmental quality. c. Income levels exert little impact on the demand for environmental quality. d. Markets often result in outcomes that are inefficient when it is difficult to assign and enforce property rights.
The Fed decreases reserves if it conducts open market
a. purchases or auctions term credit. b. purchases but not if it auctions term credit c. sales or auctions term credit d. sales but not if it auctions term credit