Answer the following questions true (T) or false (F)
1. In a market with positive externalities, the market equilibrium price will be less than the efficient equilibrium price.
2. Health insurance companies impose deductibles on policies and co-payments on claims to reduce the problem of adverse selection.
3. Adverse selection is a situation in which one party to an economic transaction has less information than the other party.
1. TRUE
2. FALSE
3. FALSE
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Economist Arthur Laffer made the argument that tax rates in the United States were so high that reducing the rates would increase tax revenue
a. True b. False Indicate whether the statement is true or false
The role of international ________ is to direct one nation's savings into another nation's investments.
A. merchandise trade flows B. unilateral transfers C. services flows D. capital flows