Author Question: Which is a screen against adverse selection a. Insurance companies require homeowners to have smoke ... (Read 135 times)

dalyningkenk · **on:** Jul 1, 2018

Which is a screen against adverse selection
a. Insurance companies require homeowners to have smoke detectors
b. Rearview cameras in cars
c. Installing engine monitors to track driving habits of the insured
d. Prospective secretaries must take a typing test before being hired

Question 2

Which feature of a market would contribute most to overall social welfare?
a. Low prices and high outputs
b. Reduction in costs due to technological improvements
c. The invention of new products
d. Difficult to weigh a, b, and c without further information about society's preferences