Asymmetric information can lead to the ________-informed parties to try to take advantage of the ________-informed parties, which can cause ________.
A) better; less; moral hazard, but not adverse selection
B) better; less; moral hazard and adverse selection
C) less; better; adverse selection, but not moral hazard
D) less; better; moral hazard, but not adverse selecti
B) better; less; moral hazard and adverse selection
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When a competitive market achieves allocative efficiency, it is implied that
A. the quantity demanded is lower than the quantity supplied. B. the marginal benefit of having the product is greater than the marginal cost. C. the combined consumer and producer surplus is maximized. D. the buyers are getting the maximum consumer surplus from the product.
The table shows data reported by Statistics Canada for 1999. In 1999, the unemployment rate was
A) 1.2 million. B) 5.0 percent. C) 7.6 percent. D) 7.9 percent. E) 6.1 percent.
The above figure illustrates the labor market for fast food restaurants in a small city in Peru. What would be the effects of a minimum wage imposed at $5.50 per hour?
A) unemployment equal to 400 hours B) unemployment equal to 200 hours C) a shortage of 400 hours D) nothing because the minimum wage has no effect on the equilibrium price and quantity
Refer to the accompanying figure, which shows the market for cups of coffee. What might cause a shift from the original demand curve to the new demand curve?
A. An increase in the price of coffee creamer. B. An expectation that coffee prices will fall in the future. C. An increase in consumers' tastes for coffee. D. A decrease in the price of tea.