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Author Question: People's abilities to bear risk increases with: a. their abilities to understand the market. b. ... (Read 96 times)

Coya19@aol.com

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on: Jun 30, 2018
People's abilities to bear risk increases with:
 a. their abilities to understand the market.
  b. their abilities to diversify their asset holdings.
  c. their abilities to invest in risky assets over a large time period.
  d. their abilities to judge the probability of outcomes.

Question 2

Asymmetric information often makes it difficult to tell good from bad. This is a problem of
 A) moral hazard.
  B) negative externalities.
  C) adverse selection.
  D) moral hazard and not adverse selection.


nothere

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Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

C


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