Adverse selection is more likely when a job requires intangible or unmeasurable abilities

A local bar provides free pretzels and peanuts and cheap drinks on a Monday night. But soon a fight breaks out in the parking lot between two quarreling patrons. Neighboring homeowners awaken as a result, and call the police

What can we clearly conclude? A) The bar's free pretzels and peanuts generate a positive externality. B) Each fighter imposes a negative externality on the other fighter. C) The fighters impose a negative externality on the neighboring homeowners. D) The neighboring homeowners impose a negative externality on the police. E) All of the above are true.

A monthly budget can help you achieve financial security by

A) expanding the borrowing limits on your existing credit cards and increasing the number of credit cards you hold. B) helping you choose stocks that are most likely to increase in price. C) increasing your financial awareness and helping you allocate your funds more effectively. D) reducing the likelihood that you will face unexpected expenditures for maintenance and repairs.