Answer: Adverse selection
Explanation: In simple words, adverse selection refers to an insurance problem in which the buyer and seller of the insurance do not have same information. This occurs when the buyer deliberately hide some material facts from the insurance company.
In the given case, The company is charging more from new customers because they have perception that they take their services only when it is highly probable they have to use that.
Hence from the above we can conclude that the correct option is B.
Answer: Asset allocation
Explanation:
Asset allocation refers to the strategy of investing in different types of assets and investment vehicles so that the risks would be balanced by the rewards to be earned so that the investor will benefit.
Asset allocation is usually based on the investor's investment goals and their risk appetite. Those who are more risk tolerant will usually invest more in stocks so Siiri here is most likely risk averse but based on the percentage that went into stocks, they might be more risk neutral.
Answer:
b. prevent mergers that would decrease competition and raise the costs of production
Explanation:
Antitrust laws are set up to prevent unfair advantage by a firm or group of firms in the market. The main aim is to provide a level playing field for all forms in a particular industry.
This is done by increasing competition among the firms and reducing cost of production.
Cost reduction help new firms to enter the market easily.
So antitrust laws have economic benefits when they prevent mergers that would decrease competition and raise the costs of production.
Answer:
The correct answer is D that is Job analysis.
Explanation:
Job analysis is the procedure which is used to identify and determine or evaluate in depth or detail the various aspects of the certain job or a specific job.
So, the firm who is engage in the systematic procedure for studying the positions so as to determine the various requirements as well as the elements is called as the job analysis.
Answer:
B. statistical discrepancy.
Explanation:
Since it is mentioned that the $471 million represents the deficit in the US current account i.e. counterbalanced by a surplus of $255 billion
So here the difference represents the statistical discrepancy
Therefore as per the given situation, the correct option is B
And, the rest of the options are wrong