Adverse selection represents
a. Profitable transaction
b. Unconsummated transaction
c. Wealth creating transaction
d. All of the above
d
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A monopolistically competitive market can also be:
A. perfectly competitive market. B. a monopoly. C. an oligopoly. D. All of the above.
Vikas earns too much for his own children to qualify for free school lunches, but he does not object to the state providing them for children from low income families even though this program increases the taxes he must pay. He recognizes that his and his children's life prospects are very different from those of the families receiving free lunches. He also knows that he would want his children to have free lunches if his family needed them. Vikas' thinking is most closely aligned with:
The Clean Air Act and its amendments increase the production costs of the firms in a covered industry through increased:
A. fixed costs while marginal cost is unchanged. B. fixed costs and increased marginal costs. C. average cost while marginal cost is unchanged. D. marginal cost while fixed costs remain the same.
Which of the following is a normative economic statement?
A. The poverty rate hit a new high last year and income distribution also worsened B. Health care accounts for roughly a third of total spending in the economy C. The government needs to revamp the Social Security program to make it sustainable D. Retail sales are expected to continue on their downward trend in the next three quarters