Which of the following is NOT an example of the efforts to reduce the adverse selection problem?
A. Sellers offer warranties.
B. Consumers invest in information.
C. Sellers offer money-back guarantees.
D. All of these are examples of efforts to reduce adverse selection.
Answer: D
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What are the economic functions of depository institutions?
What will be an ideal response?
During the fiscal expansion associated with the Vietnam war, what type of expenditures was initially "crowded out?"
A) autonomous consumption B) nonresidential fixed investment C) residential construction D) nonresidential construction
Price discrimination is:
a. when firms charge different prices to different customers based on the different costs of serving them. b. when firms charge different prices to different customers based on their willingness to pay. c. an illegal practice. d. a practice that leads to the same outcome as would public ownership of a monopoly.
The benefits from free trade are not evenly distributed throughout an economy.
a. true b. false