"Economics is concerned with how individuals, institutions, and society make optimal choices under conditions of scarcity." This statement is:

A. positive but incorrect.
B. positive and correct.
C. normative but incorrect.
D. normative and correct.


Answer: B

Economics

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Adverse selection in insurance requires that

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a. True b. False Indicate whether the statement is true or false

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a. new firms will enter the market, and the current firms will experience a decrease in demand for their products until zero economic profit is again restored. b. new firms will enter the market, and the current firms will experience an increase in demand for their products until zero economic profit is again restored. c. some existing firms will exit the market, and the remaining firms will experience an increase in demand for their products until zero economic profit is again restored. d. some existing firms will exit the market, and the remaining firms will experience a decrease in demand for their products until zero economic profit is again restored.

Economics