<span>In the insurance market, this is referred to as adverse selection. Adverse selection is simply just a situation where the seller has information that the buyer does not have about an aspect of the product or its quality, or vice versa. When it comes to insurance, adverse selection is the likelihood of those who preform dangerous jobs or are high risk to get life insurance.</span>
Answer:
"The rigidity of rules and regulations
" is the appropriate response.
Explanation:
- Rigidity seems to be a distinguishing characteristic of the disposition among people with autism or disabilities.
- The same kind of perspective also requires an individual to implement strict guidelines to circumstances that require uncertainty as well as consistency.
That being said, regulations, as well as standards, seldom operate stringently, with little difference throughout circumstances and conditions.
Answer:
The answer to this question is option B. Hector's spouse participates in an employer-sponsored plan but Hector is not eligible to participate in this plan.
Explanation:
Hector can deduct the cost of the premium for AGI if Hector's spouse participates in an employer-sponsored plan but Hector is not eligible to participate in this plan.
Answer:
b. private producers of such goods will have little incentive to control costs and provide them at low prices
Explanation:
Externality is a situation where the production activities of market participants (either producers or consumers) have an effect on third parties not involved in production.
Externality is a form of market inefficiency.
Negative externality is when goods are produced privately, but the cost of their purchase is paid for by the taxpayer or some other third party.
When negative externality occurs, producers have little incentive to reduce cost because they don't bear the total brunt of their activities. This is why activities that generate negative externality are over produced.
Government needs to step in to control this problem. They can either impose tax on producers or regulate their activities.
Pollution is an example of negative externality.
I hope my answer helps you
