Government can play a crucial role in promoting economic efficiency by
a. taxing income
b. providing physical and institutional infrastructures
c. establishing price ceilings to help certain buyers
d. establishing price floors to help certain sellers
e. creating barriers to market entry whenever there is a threat of excessive competition
B
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Joshua's indifference curves for two products are shown below: 
Which of the following indifference curves is the least preferred?
A. U1 B. U2 C. U3 D. Unclear given the current information
Which of the following is an example of screening?
a. A lender checks a loan applicants credit history. b. When an employee purchases group life insurance without taking a physical exam, she knows more about her health than does the insurance company. c. When someone is considering buying a used car from a dealership, the seller knows the repair history of the car but the potential buyer does not. d. All of the above are correct.
When tariffs are imposed, ______ lose more than ______ gain.
a. consumers; producers and the government b. consumers and the government; importers c. producers and importers; consumers d. consumers and the government; producers
A firm that has increasing returns to scale in the long run does not experience diminishing marginal returns in the short run.
Answer the following statement true (T) or false (F)