Adverse selection is... a. Asking a private pilot about the safety of his plane. b. Purchasing more dental insurance when you know your teeth are especially bad. c. Purchasing the required homeowner's insurance when you buy a condo. d. Asking a doctor if you are sick. e. Asking your lawyer if you should sue your doctor for malpractice.

Adverse selection is... a. Asking a private pilot about the safety of his plane. b. Purchasing more dental insurance when you know your teeth are especially bad. c. Purchasing the required homeowner's insurance when you buy a condo. d. Asking a doctor if you are sick. e. Asking your lawyer if you should sue your doctor for malpractice.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter2: Choice In A World Of Scarcity

Section: Chapter Questions

Problem 5SCQ: Individuals may not act in the rational, calculating way described by the economic model of decision...

See similar textbooks

Similar questions

Economists describe a choice as: Group of answer choices A. a tradeoff B. human C. limited resource D. None of the above.
How do economists address the 3 central questions that economists ask to better understand decision makers’ of higher education behaviors on : Who is the decision maker? What goal is the decision maker trying to achieve? What are the decision maker’s constraints?
Normative theories predict that people should always choose certain options in gambling problems, but ____ theory explains why they do not always follow the normative theories dictate that they should. 1. Expected utility 2. Heuristic 3. Prospect
According to standard economic theory which is true? a. Choices people make, including the choice to eat French fries or smoke, should be respected as long as these choices do not affect others. b. Taxes on sugary sodas force consumers to make decisions that are privately confusing. c. Public intervention is always justified as long as the prevalence of the problem is large d. Obesity is a public problem, not a private problem, because it is associated with reduced life expectancy.
Individuals may not act in the rational, calculating way described by the economic model of decision making, measuring utility and costs at the margin, but can you make a case that they behave approximately that way?
This is an economics-based multiple-choice question... Which of the following facts could not be explained by path-dependence? (choose one) A) Sue lives in the city in which she was born. B) Maria likes to cook the dishes her mother used to cook. C) Vanessa is the first person in her family to go to college. D) Ahmed has played piano since he was four years old.
Describe 3 ways in which human decision differs from the rational individual conventional economic theory with explanations please.
Why does knowing the facts help people maximize their choices
How is top-down budgeting different from bottom-up budgeting? Which of these methods is more widely accepted? What have been some of the attempts to reform bottom-up budgeting?
Suppose that the church offers free tuition to Inanda Seminary High School students with a "B" average. In 2020, the church raised the requirement so that fewer students qualified for the scholarship. At the same time, the church increased spending on health care. Suppose that high school education is on the vertical axis and health care is on the horizontal axis of a PPF. These changes a. will cause a shift out of the PPF. b. are an example of incentives C. are an example of a tradeoff. d. will cause a shift in of the PPF.
What is opportunistic behavior and the example of it? Please asap.
Economic analysis is limited in its ability to forecast precise choices of a given individual because: