One result of asymmetric information in health insurance markets ...

[nramada]

One result of asymmetric information in health insurance markets is
 a. an optimal number of insurance policies sold.
  b. adverse selection.
  c. externalities in consumption.
  d. a low marginal benefit of additional information for the buyer of insurance.
  e. The principal-agent problem.

Question 2

Consider four possible benefits of a water resources project: I. Provides employment to construction workers currently building houses. II. Provides electric power to the market. III. Provides reduced flood risk to individuals living along the river. IV. Raises the profits of MacDonald's stands in the area which serves construction workers. Which of these are true social benefits of the project?
 a. All of them
  b. I, II, and III, but not IV
  c. I and III, but not II and IV
  d. II and III, but not I and IV

[adammoses97]

Answer to Question 1

B

Answer to Question 2

d

[nramada]

Thank you

[adammoses97]

No problemo