The maximum price reduces total surplus of the market because it prevents some mutually beneficial transactions.
Answer the following statement true (T) or false (F)
True
You might also like to view...
Governments of market-oriented economies never tamper with the price mechanism.
Answer the following statement true (T) or false (F)
As the unemployment rate increases,
A) potential GDP decreases. B) real GDP decreases. C) both real GDP and potential GDP decrease. D) potential GDP increases. E) full employment GDP decreases.
Pricing insurance policies is made difficult because buyers have more information than sellers. This difficulty is an example of
A) adverse selection. B) asymmetric information. C) the free-rider problem. D) moral hazard.
Programs like Medicaid in the United States provide low-income households with medical care, because of the attitude of unfairness associated with the allocation of health care
a. True b. False Indicate whether the statement is true or false