« previous next »

Author Question: People's abilities to bear risk increases with: a. their abilities to understand the market. b. ... (Read 107 times)

Coya19@aol.com

  • Hero Member
  • *****
  • Posts: 601
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

  • Sr. Member
  • ****
  • Posts: 324
Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Earwax has antimicrobial properties that reduce the viability of bacteria and fungus in the human ear.

Did you know?

Common abbreviations that cause medication errors include U (unit), mg (milligram), QD (every day), SC (subcutaneous), TIW (three times per week), D/C (discharge or discontinue), HS (at bedtime or "hours of sleep"), cc (cubic centimeters), and AU (each ear).

Did you know?

Bacteria have flourished on the earth for over three billion years. They were the first life forms on the planet.

Did you know?

As the western states of America were settled, pioneers often had to drink rancid water from ponds and other sources. This often resulted in chronic diarrhea, causing many cases of dehydration and death that could have been avoided if clean water had been available.

Did you know?

The term bacteria was devised in the 19th century by German biologist Ferdinand Cohn. He based it on the Greek word "bakterion" meaning a small rod or staff. Cohn is considered to be the father of modern bacteriology.

The formation of a chimeric gene that is found in people with certain forms of leukemia. The formation of a chimeric gene that is found in people with certain forms of leukemia.
Risk of death from motorcycle accidents (dashed lines) and passenger accidents (solid lines) per 100 Risk of death from motorcycle accidents (dashed lines) and passenger accidents (solid lines) per 100
Change in Drawing Abilities from Early to Middle Childhood Drawings become more realistic as fine m Change in Drawing Abilities from Early to Middle Childhood Drawings become more realistic as fine m
Reconstruction Drawing of Trajan's Market Reconstruction Drawing of Trajan's Market
The population of Asia increases rapidly, the demand for food and water is also growing The population of Asia increases rapidly, the demand for food and water is also growing
People are living longer today than in previous decades People are living longer today than in previous decades
Video: Neural regulation of blood pressure - baroreceptor and chemoreceptor reflexes

For a complete list of videos, visit our video library