Foundations of economics 6th by parkin ch12 clicker questions

Click Clickon onthe thebutton buttontotogo gototothe theQuestion problem © 2013 Pearson Markets with  Private Information 12 CLICKER QUESTIONS © 2013 Pearson Click Clickon onthe thebutton buttontotogo gototothe theQuestion problem Checkpoint 12.1 Checkpoint 12.2 Checkpoint 12.3 Question Question 11 Question Question 55 Question Question 88 Question Question 22 Question Question 66 Question Question 99 Question Question 33 Question Question 77 Question Question 10 10 Question Question 44 © 2013 Pearson CHECKPOINT 12.1 Question Asymmetric information means that _ A the buyer always has information that the seller does not have B the seller must have information that the buyer does not have C either the buyer or the seller has information that the other does not have D the buyer and the seller have the same information E the seller has more information than the seller © 2013 Pearson CHECKPOINT 12.1 Question The lemons problem in the used car market is that A the price of a lemon is too high B the price of a lemon is too low C no lemons are bought or sold D only lemons are bought and sold E the price of a lemon is too high and too many lemons are traded © 2013 Pearson CHECKPOINT 12.1 Question In the used car market with a pooling equilibrium, the price of a lemon is _ the price of a good car, and with a separating equilibrium, the price of a lemon is the price of a good car A B C D E less than; equal to equal to; less than equal to; more than more than; equal to equal to; equal to © 2013 Pearson CHECKPOINT 12.1 Question If buyers cannot assess the quality of used cars and there are no warranties, then _ A only lemons are sold B only good cars are sold C good cars are sold at a higher price than lemons D there is no adverse selection problem E all cars (lemons and good cars) sell for the same price © 2013 Pearson CHECKPOINT 12.2 Question Mark is an aggressive driver so he is more likely to buy auto insurance This situation illustrates the idea of A B C D E moral hazard adverse selection the lemons problem inefficiency in the insurance market a separating equilibrium © 2013 Pearson CHECKPOINT 12.2 Question When Sam makes an agreement and then behaves after the agreement in a way to increase his benefits and harm the other party to the agreement, Sam is illustrating A B C D E signaling adverse selection moral hazard the cost of contracting a pooling equilibrium © 2013 Pearson CHECKPOINT 12.2 Question Screening _ A leads to a pooling equilibrium in the insurance market B means that an uninformed person passes knowledge to an informed person C makes no-claim bonuses unnecessary D explains why insurance companies offer both low-premium, high-deductible policies and high-premium, low-deductible policies E makes the insurance market inefficient © 2013 Pearson CHECKPOINT 12.3 Question Moral hazard in the market for health-care services leads A patients to adopt healthier life styles B to a separating equilibrium C everyone to buy health insurance D healthy people not to bother buying health insurance E health-care providers to overtreat patients © 2013 Pearson CHECKPOINT 12.3 Question The missing market in the health-care market is the insurance market for _ A young healthy people B infectious diseases C people who have pre-existing health conditions D people who are employed by HMOs E vaccinations © 2013 Pearson CHECKPOINT 12.3 Question 10 Vaccinations against infectious diseases , so private markets will provide _ efficient quantity of vaccinations A B C D E are a public good; less than the are a public good; the lead to adverse selection; less than the have a positive externality; less than the have a positive externality; the © 2013 Pearson ... with a pooling equilibrium, the price of a lemon is _ the price of a good car, and with a separating equilibrium, the price of a lemon is the price of a good car A B C D E less than; equal... market is that A the price of a lemon is too high B the price of a lemon is too low C no lemons are bought or sold D only lemons are bought and sold E the price of a lemon is too high and too... are employed by HMOs E vaccinations © 2013 Pearson CHECKPOINT 12.3 Question 10 Vaccinations against infectious diseases , so private markets will provide _ efficient quantity of vaccinations