The working-age population can be divided into two groups
A) people in the labor force and people looking for work.
B) people in the labor force and people with a job.
C) people looking for work and those in the armed forces.
D) people in the labor force and people who are not in the labor force.
D
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By convention, commercial paper issuers are divided into
A) individuals and corporations. B) private institutions and government institutions. C) large businesses and small businesses. D) financial companies and nonfinancial companies.
Which of the following is NOT an example of adverse selection?
A) A family with a home ten feet from a large river buys flood insurance. B) A company uses the proceeds of a new stock sale to build an unnecessarily luxurious new headquarters. C) A terminal cancer patient buys life insurance. D) A company in serious financial trouble offers to pay you 30% on a loan.