Question 1: Match the following definitions/descriptions with the appropriate terms.

1. Market type with many buyers, many sellers,and one product whose price cannot be influenced by any one firm in the market.
2. Market type with many buyers, few sellers, and differentiated products
3. Market type with one seller and no competition for sales of a particular good
4. Market type with many buyers,multiple sellers,and products which may be differentiated. Most common market type in real world
5. Situation when a buyer and seller have different amounts of knowledge about a good being sold (one knows more than the other)
6. when sick people tend to be more likely to seek health insurance than healthy people
7. when healthy people are more likely to seek health insurance than sick people
8. what results when there are repeated transactions that feature knowledge imbalances between the buyer and seller about the good being transacted
9. incentive for people with insurance to be riskier
10. incentive for people with insurance to prefer more expensive treatments

Options to match each above statement with

a. advantageous selection

B. ex post moral hazard

C. adverse selection

D. monopolistic competition

E. perfect competition

F. death spiral

G. asymmetric information

H. oligopoly

I. ex ante moral hazard

J. monopoly

Question 2: Match each of the following scenarios to the term that best matches it

1. you get health insurance and decide to stop wearing your seatbelt in the car
2. you choose to get more expensive treatments because you have health insurance
3. you get health insurance because you know you're predisposed to get sick
4. you know you get into a lot of fender benders, so you get a more generous auto insurance plan
5. you wear a seatbelt, which makes you safer; so you drive much faster
6. you go to the doctor more often simply because you have health insurance
7. you get into a car accident; because you have coverage,you push your mechanic to rule the car a total loss so you can get a new one (if you had no coverage, you'd prefer to fix the current car)
8. you live in a fire-prone area, so you choose to get homeowner's insurance to protect you from loss due to fire
9. you build a home in a fire-prone area because you know insurance would cover any fire damage
10. your home sustains fire damage;when repairing it, you use more expensive materials because insurance is paying for it

options to match each above statement with

A. ex ante moral hazard

B. adverse selection

C. ex post moral hazard