question archive In a pooled equilibrium, a single good risk has left the pool
In a pooled equilibrium, a single good risk has left the pool
Subject:EconomicsPrice:2.84 Bought6
In a pooled equilibrium, a single good risk has left the pool. Which statement is incorrect about a second good risk also leaving the pool?
a) It makes it more attractive for other good risks to leave pool
b) It imposes a negative externality on the first good risk that left the pool
c) It imposes a negative externality on the good risks remaining in the pool
d) It imposes a positive externality on the bad risks
Option 1
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Option 2
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