Adverse selection in insurance markets results in missing markets because people engage in riskier behavior once they are insured.
Answer the following statement true (T) or false (F)
False
Rationale: The tendency for people to behave differently when they are insured is moral hazard -- and adverse selection does not require moral hazard.
Economics
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What occurs if a price floor is set above the equilibrium price? What occurs if a price ceiling is set below the equilibrium price?
What will be an ideal response?
Economics
Fiscal policy may be mistimed due to
A. the jet lag. B. the putting lag. C. the impact lag. D. All of these.
Economics