See the information in Scenario 4.4. Suppose P = 10, Pc = 100, Pd = 2, A = 5, and I = 50. What is the price elasticity of demand?

Which of the following is the best example of an "adverse selection" scenario (from a business perspective)?

A. An attorney engages in legally-risky tactics after discovering that a potential settlement is larger than was initially expected. B. An employee begins stealing from the company after being passed over for a promotion. C. A habitually reckless driver chooses not to buy auto insurance. D. A person who drinks and smokes heavily conceals this information before buying health insurance.

Assuming the United States sends foreign aid payments to another country. Then, this is shown in the U.S. balance of payments account as a

a. credit in the current account. b. debit in the current account. c. debit in the capital account. d. credit in the capital account. e. credit in the official reserve transactions account.