Mechanism design is used to
A. give individuals the incentive to reveal the truth about themselves.
B. correct inefficiencies associated with asymmetric information.
C. align the interests of two parties in a transaction.
D. All of the above are correct.
Answer: D
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In the Keynesian model of income determination, consumer expenditure includes spending by
A) consumers on personal computers. B) businesses on personal computers. C) governments on personal computers. D) foreigners on domestic personal computers.
Which of the following is NOT related to the government's political function of income redistribution?
A) providing money transfer payments B) excise tax on gasoline C) Social Security D) in-kind transfers
The payment for current rather than future command over resources is
A) an implicit cost. B) an implicit benefit. C) interest. D) opportunity cost.
Price discrimination adds to social welfare in the form of (i) increased total surplus. (ii) reduced costs of production. (iii) increased consumer surplus
a. (i) only b. (i) and (ii) only c. (i) and (iii) only d. (i), (ii), and (iii)