Exam 24: Price Discrimination

The Affordable Care Act:

What might a newly married woman be signaling if she chooses to take her spouse's last name? If she chooses not to?

The adverse selection death spiral is caused by the changing composition of health insurance policy buyers from:

Aligning the incentives of buyers and sellers will reduce moral hazard.

All of the following are examples of signaling EXCEPT:

The adverse selection death spiral in health insurance can be prevented by:

Supporters of the Affordable Care Act argue that:

When moral hazard occurs, the _____ informed party may be exploited and resources may be consumed without generating _____.

Sellers on eBay with good reputations are able to sell their products at higher prices. Describe two ways the reviews that lead to these good reputations lessen moral hazard?

In the market for used cars, half of the cars are of good quality and would sell for $8,000, while half of the cars are of poor quality and would sell for $6,000. If a buyer possessed no information about the quality of the car she was considering, what would she be willing to pay for it?

Buyers and sellers facing asymmetric information:

Angie's List is an example of:

Signaling eases some problems of_____ but causes problems with _____.

An example of the inefficiency of signaling is:

Many forms of information are considered to be a public good, subject to the free rider problem.

A doctor who provides a second opinion knows she will not be performing any other service. This solves moral hazard by:

An example of a credible promise is a used car that:

The principal-agent problem is the problem of:

When an agent tries to exploit information advantage in a dishonest way it is called:

Adverse selection occurs when an agent tries to exploit information advantage in a dishonest way.