The two major problems caused by asymmetric information are the moral-hazard problem and the principal-agent problem
a. True
b. False
Indicate whether the statement is true or false
False
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Refer to the Article Summary. The article discusses the rising administrative costs of health care
Even if private insurance companies were more efficient and brought administrative costs down, consumers would still pay less than the full cost of medical treatment. This would result in the market equilibrium price of medical services being ________ than the efficient equilibrium price, and the market equilibrium quantity of medical services being ________ than the efficient equilibrium quantity. A) less; less B) greater; less C) less; greater D) greater; greater
Who popularized the expression "Time is money."
a. Benjamin Franklin b. George Washington c. Herbert J. Jones d. Amanda Cunningham
In the long run, economic profit for a monopolistically competitive firm
a. is zero, due to the lack of barriers to entry b. is zero, due to product differentiation c. may be positive, due to strong barriers to entry d. may be positive, due to product differentiation e. may be positive, due to advertising and product promotion
An advance in technology commonly refers to the ability to produce
A) the same output with a smaller quantity of resources. B) more output with a fixed quantity of resources. C) more output with a greater quantity of resources. D) both a and b E) both b and c