which areas represent producer surplus under perfect price discrimination?
a. A + C
b. B
c. C
d. A + B + C
d. A + B + C
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Two consequences of asymmetric information are adverse selection and moral hazard. An important distinction between the two is
A) adverse selection exists prior to the completion of a transaction while moral hazard occurs after the transaction is completed. B) moral hazard exists prior to the completion of a transaction while adverse selection occurs after the transaction is completed. C) moral hazard leads to an inefficient quantity while adverse selection leads to an efficient quantity. D) adverse selection leads to an inefficient quantity while moral hazard leads to an efficient quantity.
Points to the left of the IS curve represent excess demand for goods
Indicate whether the statement is true or false
Refer to the above figure. The arrows show the direction of a shift in the demand curve of Good A. Which of the following would be the most likely reason for the shift in the demand curve if Good A is an inferior good?
A) an increase in the price of Good A B) a decrease in the price of Good A C) a decrease in consumers' income D) an increase in consumers' income
A computer game is an example of
A. a credibility product. B. a search product. C. a free product. D. an information product.