Refer to the figure above. The quota restricts trade by the same amount as a tariff of

If a hospital knows that an insurance company will pay for most of a patient's bill, the hospital has more of an incentive to require additional medical procedures and tests, even if the patient may not require them. This is an example of

A) moral hazard. B) adverse selection. C) asymmetric information. D) the principle-agent problem.

Under a laissez-faire system,

A. government coordinates with firms to determine output and prices for goods and services. B. input-output analysis is used by planning agencies to determine output levels. C. the demand and supply process determines output and prices of goods and services. D. firms coordinate with each other to determine output and price levels for goods and services.