An indication that Insurance companies anticipate adverse selection is

An indication that Insurance companies anticipate adverse selection is
 a. they require a deductible
  b. they do not classify clients into different risk types according to their claim history
  c. they do not classify clients into different risk types according to pre-existing conditions
  d. they do not require a co-payment

QUESTION 2

In this situation, the deadweight loss from monopoly is:
 a. 0.40.
  b. 0.16.
  c. 0.12.
  d. 0.08.

QUESTION 3

In calculating the benefit-cost ratio, social benefits and costs are discounted at the
 a. internal rate of return
  b. federal funds rate
  c. Treasury Bill rate
  d. long-term government bond rate
  e. none of the above

QUESTION 4

Signaling is
 a. actions by the informed party to reveal her true risks
  b. actions by the informed party to conceal her true risks
  c. actions by the uninformed party to uncover the true risks
  d. actions by the uninformed party to conceal the true risks

QUESTION 5

In this situation, the monopoly's profits are:
 a. 0.40.
  b. 0.16.
  c. 0.12.
  d. 0.08.

QUESTION 6

Direct costs of a public sector investment project are generally easier to measure than the direct benefits.
 a. true
  b. false

QUESTION 7

Screening is
 a. actions by the informed party to reveal her true risks
  b. actions by the informed party to conceal her true risks
  c. actions by the uninformed party to uncover the true risks
  d. actions by the uninformed party to conceal the true risks