In consumer lending, asymmetric information
A) happens only with securitization.
B) cannot be dealt with using the same techniques as in business lending.
C) can be partly offset using the same techniques as in business lending.
D) may be virtually eliminated as a problem by just a collateral requirement.
D
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Cost effective technologies to reduce pollution are most likely to result from
A) marketable pollution permits. B) pollution charges. C) taxes. D) pollution limits. E) quotas.
The table above shows the marginal costs and marginal benefits of college education. With public provision of the efficient amount of college education, the cost paid by the taxpayers is
A) zero. B) $8,000 per student. C) $4,000 per student. D) $12,000 per student.
Consider a firm that uses only one fixed input and one variable input. a . Explain how this firm's ATC, AVC, and AFC curves will be affected by a government tax on the fixed input. b. Explain how this firm's ATC, AVC, and AFC curves will be affected by a government tax on the variable input. c. When would a tax on an input cause the MC curve to change?
In Figure 6.6 if price is P2, then the industry will:
A. expand. B. contract. C. stay the same size. D. cease to exist.