Refer to the graph below. Suppose that its shows the S and D graphs in a market where production entails a significant amount of pollution. In this case, the government should use its coercive power to make:

When you get a car loan, the lending institution usually sends a check directly to the car dealer. Such a practice

A) helps forestall moral hazard. B) helps forestall adverse selection. C) gives rise to moral hazard. D) gives rise to adverse selection.

Which of the following would indicate that price is temporarily above its market equilibrium?

A) There are a number of producers who are left with unwanted inventories. B) There are a number of customers who are looking for a good but cannot find sellers. C) New firms decide to enter the market. D) The government must step in and impose a tax on the good.