QUESTION 1 Complete the following sentences: In insurance markets, ✓ can arise if insurers can't tell high-risk customers from low-risk custo In insurance markets, ✓ can arise if individuals may change their behavior after the insuranc bought, so that they behave in a more high-risk manner than they did before. In labor markets, ✓ can arise if hiring firms can't tell high-skill job-candidates from low-skill jo candidates. In labor markets, ✓ *Select Answer* moral hazard adverse selection can arise if managers can't observe the effort of workers.

QUESTION 1 Complete the following sentences: In insurance markets, ✓ can arise if insurers can't tell high-risk customers from low-risk custo In insurance markets, ✓ can arise if individuals may change their behavior after the insuranc bought, so that they behave in a more high-risk manner than they did before. In labor markets, ✓ can arise if hiring firms can't tell high-skill job-candidates from low-skill jo candidates. In labor markets, ✓ Select Answer moral hazard adverse selection can arise if managers can't observe the effort of workers.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Consumers, Producers, And The Efficiency Of Markets

Section: Chapter Questions

Problem 11PA

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