Author Question: Which of the following represent examples of adverse selection? A) Unhealthy people are more ... (Read 58 times)

RODY.ELKHALIL · **on:** Jul 1, 2018

Which of the following represent examples of adverse selection?

A) Unhealthy people are more likely to want health insurance.
B) Careless drivers purchasing extra auto insurance.
C) Risk averse individuals choosing to buy extra insurance.
D) all of the above
E) A and B only

Question 2

Inefficient outcomes can arise in markets for public goods because:

A) too much of an exclusive good is produced.
B) too little of an exclusive good is produced.
C) too much of a nonexclusive good is produced.
D) too little of a nonexclusive good is produced.