The government finances Social Security through
A) excise taxes.
B) payroll taxes.
C) the sale of goods and services.
D) state taxes.
B
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People will continue to use a common property until the marginal cost of using it equals
a. zero. b. the social marginal benefit from using it. c. the admission fee that a competitive firm would charge for its use. d. the value they receive, on average, from using it.
Information advertising might provide information about prices in stores, or it might provide information about product characteristics that consumers might not know about. Which one do you think is more likely to be efficient?
What will be an ideal response?
Clauses in life insurance policies that eliminate death benefits if the insured person commits suicide is an example of a
A) restrictive provision. B) restrictive covenant. C) anti-fraud exclusion. D) risk-based deductible.
Screening is
a. actions by the informed party to reveal her true risks b. actions by the informed party to conceal her true risks c. actions by the uninformed party to uncover the true risks d. actions by the uninformed party to conceal the true risks