Bad risks may be the most willing to pay high interest rates and thus get loans. This describes an ...

Bad risks may be the most willing to pay high interest rates and thus get loans. This describes an example of
 a. symmetrical information
  b. adverse selection
  c. natural selection
  d. moral hazard
  e. the winner's curse

QUESTION 2

Which of the following groups has the highest infant mortality rate?
 a. middle-income economies
  b. low-income economies
  c. high-income economies
  d. Western European economies
  e. all the world's economies

QUESTION 3

When those on the informed side of a market self-select, the problem of __________ occurs.
 a. natural selection
  b. external benefits
  c. adverse selection
  d. the winner's curse
  e. the common pool

QUESTION 4

Which of the following groups has the lowest malnutrition rate among children less than 5 years of age?
 a. middle-income economies
  b. low-income economies
  c. high-income economies
  d. sub-Saharan African economies
  e. all the world's economies

QUESTION 5

When sellers have more information about hidden characteristics of a good than buyers have, more low-quality units are likely to be sold than high-quality units. This is
 a. the law of diminishing marginal returns
  b. the law of natural selection
  c. the winner's curse
  d. the lemons problem
  e. the problem of common pools

QUESTION 6

Which of the following groups has the lowest life expectancy at birth?
 a. middle-income economies
  b. low-income economies
  c. high-income economies
  d. sub-Saharan African economies
  e. all the world's economies

QUESTION 7

One effect of the lemons problem in the used car market is that
 a. the market is efficient
  b. without reliable information, lemons become increasingly common
  c. no good cars are offered on the market
  d. no lemons are offered on the market
  e. good cars sell at more than their market value