Relating to the Economics in Practice on page 357: Huntington's disease is an inheritable disorder which affects 1 in 10,000 individuals, and since 1993 there has been a test that perfectly predicts the disease. Presently, insurance companies are not legally allowed to inquire about the results of genetic tests. This has led to ________ favoring potential insurance buyers.

A. moral hazard
B. market signaling
C. asymmetric information
D. adverse selection

Answer: C

Economics

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I purchase a 10 percent coupon bond. Based on my purchase price, I calculate a yield to maturity of 8 percent. If I hold this bond to maturity, then my return on this asset is

A) 10 percent. B) 8 percent. C) 12 percent. D) there is not enough information to determine the return.

Economics

Factors of production is another name for

a. the goods produced in a production possibilities table b. the goods not produced in a production possibilities table c. the goods produced in international trade d. resources e. money

Economics