To reduce adverse selection
A) firms can use screening.
B) both consumers and firms can use screening.
C) the government could eliminate all monopolies and oligopolies.
D) Both B and C.
B
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Which of the following shifts the demand curve for oranges?
A) disastrous weather that destroys about half of this year's orange crop B) a decrease in the price of a pound of bananas, a substitute in consumption for oranges C) an increase in the price of the fuel used to transport oranges to supermarkets D) great weather that produces a bumper orange crop this year
The Social Security tax is structured as a percent tax on earnings up to a maximum income level. Income above that level is not subject to a social security tax. Is Social Security a progressive, proportional, or regressive tax structure? Explain
There is much world concern over the deteriorating condition of the pyramids and other historical structures in Egypt. While people of all nations enjoy visiting these structures, there has been little financial support for preservation coming from within Egypt or from elsewhere. Economists would describe this as an example of
A. an externality. B. a public good. C. a free-rider problem. D. imperfect information.
An example of a transfer payment is:
A. the taxes corporations pay on profit. B. a federal income tax refund. C. a Social Security payment. D. the $3 donation to the Wildlife Fund you make on your tax return.