Both screening and signaling:
A. correct inefficiency in the market.
B. can increase surplus gained in a market.
C. allow more transactions to take place that are valuable to buyers and sellers.
D. All of these statements are true.
Answer: D
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Which of the following are components of fiscal policy?
a. Transfer payments only b. Money supply and government purchases c. Government purchases only d. Government purchases, transfer payments, and taxes e. Taxes and money supply
Which of the following is an example of using the scientific method with a natural experiment?
a. measuring how long it takes a marble to fall from a ten story building b. comparing plant growth with and without a soil additive c. tracking the price of oil when a war in the Middle East interrupts the flow of crude oil d. observing the reaction when two chemicals are mixed together
The government sometimes creates an excess demand for a product by setting a maximum price at which the product may be sold to consumers. This is sometimes called a:
A. price ceiling. B. price floor. C. tax. D. subsidy.
Which of the following is a positive economic statement?
A) U.S. citizens should only buy products which are produced in the United States. B) The government should ban the production and sale of incandescent light bulbs. C) Raising the tax on gasoline raises the selling price of gasoline. D) The government should revamp its immigration policies.