Which is a screen against adverse selection
a. Insurance companies require homeowners to have smoke detectors
b. Rearview cameras in cars
c. Installing engine monitors to track driving habits of the insured
d. Prospective secretaries must take a typing test before being hired
d
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Assume that a firm has $100 million in real assets and $90 in real liabilities. If the price level rise by ten percent, the real value of its assets would ________
A) fall B) rise C) change, but more information must be provided to determine their exact movement D) remain unchanged
The distinguishing characteristic of private goods is that
A) the principle of rival consumption does not apply to them. B) their use is exclusive to the people who purchase them. C) they can be sold but not rented. D) they can be sold or rented, but not borrowed.