Information problems create inefficient outcomes in:

A. the private sector but not the public sector.
B. the public sector but not the private sector.
C. neither the private nor the public sector.
D. both the private and the public sectors.


Answer: D

Economics

You might also like to view...

________ are inducements to act in certain ways

Fill in the blank(s) with correct word

Economics

Under a flexible exchange rate regime, an increase in real money demand

A) moves the AA curve to the right. B) moves the AA curve to the left. C) leaves the AA curve unchanged. D) moves the DD curve to the right. E) moves the DD curve to the left.

Economics

Economic activity that is above potential output ________

A) signals that potential output is about to increase B) is not possible C) results from an economic shock to which the economy has yet to adjust fully D) occurs near the trough, rather than the peak, of a business cycle E) none of the above

Economics

According to the search model, a computerized dating service should

a. reduce the amount of search b. not affect the amount of search c. increase quality dispersion d. reduce quality dispersion e. lower the marginal benefit of search

Economics