Health insurance companies impose deductibles on policies and co-payments on claims to reduce the problem of adverse selection

Mr. Smith wants to buy a house in a certain neighborhood that he thinks is ideal for an elderly, single man like himself

However, before buying the house, he consults his friend who lives in the same neighborhood and thinks that it is the ideal place for him. This is an example of a(n) ________. A) confirmation bias B) attenuation bias C) attentional bias D) distinction bias

The current price of a government bond is $920. The bond pays $90 in interest this year. At the end of the current year, the bond matures, and the principal of $1,000 is repaid. What is the return to the holder of this bond?

A) 1 percent B) 8 percent C) 9 percent D) 17 percent