--%>
Assignment Help - homework help

Adverse Selection as a classifiable

Which of the given below conditions is most evidently classifiable as the adverse selection? (i) The company manufactures a miracle weight loss solution guarantee enduring weight loss, however in realism the solution only rids surplus water weight for the short period of time. (ii) Jenny’s friends come to the diner where she works and Jenny lets them encompass free food. (iii) Whenever Sam, the supervisor, is not working at bookstore, his staffs read magazines, rather than shelving books, and are impolite to the customers. (iv) The undercover officer recognizes that the car dealer sells cars with odometers which have been wound backwards and tries to purchase from the dealer in sting operation to fix the dealer.

Find out the right answer from the above options.

   Related Questions in Microeconomics

  • Q : Effect of total revenue on economic loss

    The economic loss occurs whenever total revenue: (i) Is equivalent to the total costs. (ii) Fails to cover the opportunity costs. (iii) Surpasses opportunity costs. (iv) Surpasses the explicit costs. Can someone please help me in f

    		•
  • Q : When are average and outputs prices of

    Average and Outputs prices for CDs and DVDs both rose throughout 1999 to 2000 (before the start of Napster and subsequent file-sharing software), which implying: (1) supply of prerecorded music should have grown. (2) law of demand doesn’t apply

    		•
  • Q : Excess supply for commodity When do we

    When do we state that there is an excess supply for the commodity in market? Answer: If at a given price the quantity supplied of a product surpasses its quantity d

    		•
  • Q : Effect of Increase in per capita income

    Rises in per capita income in the United States would be most probable to reduce the: (i) Demands for lard, pinto beans, and utilized tires. (ii) Excesses in the federal govt. budget. (iii) Supply of untrained labor relative to skilled labor. (iv) Tot

    		•
  • Q : Slope of indifference Curve State the

    State the slope of indifference Curve? Answer: Slope of indifference curve is equivalent to MRS, that is, Marginal Rate of Substitution.

    		•
  • Q : Potential inefficiencies and inequities

    Whenever someone paying for the service can’t completely monitor the behavior or aims of the person offering the service, there are potential inequities and inefficiencies caused by the: (1) Moral hazard. (2) Adverse selection. (3) Utilitarianism. (4) Principal-

    		•
  • Q : Estimate federal poverty rate The

    The federal poverty rate computed by the Bureau of the Census is the: (w) ratio of poverty income to the average income. (x) number of persons below the poverty line. (y) percentage of persons below the poverty line. (z) official defi

    		•
  • Q : Ac illustrate a firm under monopolistic

    illustrate a firm under monopolistic competition?

    		•
  • Q : Long run entry of supply curve When the

    When the price for cranberries is primarily P1, in that case in the long run: (w) firms will neither enter nor exit this industry. (x) entry of firms will move curve supply curve A to the right. (y) exit of firms will move

    		•
  • Q : Rate of return onto investment When the

    When the rate of return on investment equals the interest rate, in that case investment will: (w) rise. (x) fall. (y) not change. (z) Any of the above is possible. Hey friends please give your opin

    		•