The requirement that all drivers must carry auto insurance reduces
A) moral hazard.
B) the effectiveness of signaling.
C) adverse selection.
D) the chance of auto accidents.
C
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If resources are used efficiently, then ________
A) marginal social cost is minimized B) consumer surplus plus producer surplus is maximized C) consumer surplus equals producer surplus D) producer surplus is maximized
Intraindustry trade is characterized by what two features?
What will be an ideal response?
Why do rent controls cause deadweight losses?
a. fewer apartments are rented than in the competitive market b. more apartments are rented than in the competitive market c. tenants have to pay more than in the competitive market d. landlords can charge more than in the competitive market
An aggregate supply curve that is a vertical line must be:
A. a short-run curve. B. an individual firm's supply curve. C. an individual industry's supply curve. D. a long-run curve.