If adverse selection exists in a market,
A) it increases consumer surplus but reduces producer surplus.
B) it reduces consumer and producer surplus.
C) it reduces producer surplus but has no impact on consumer surplus.
D) it increases both consumer and producer surplus.
B
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What does the slope of the credit demand curve imply? When do movements along a credit demand curve occur?
What will be an ideal response?
When demand is inelastic, a decrease in price will cause
a. an increase in total revenue. b. a decrease in total revenue. c. no change in total revenue but an increase in quantity demanded. d. no change in total revenue but a decrease in quantity demanded.
The WTO
A) is an affiliate of the World Bank. B) is an organization created to oversee NAFTA. C) was established to resolve trade disputes among member nations. D) provides low interest loans to member nations to help develop their export industries.
"If the Federal Reserve raises interest rates, demand for housing is likely to fall" is a ________ statement about ________ policy.
A. normative; monetary B. positive; monetary C. normative; fiscal D. positive; fiscal