At a price for which quantity demanded exceeds quantity supplied, a __________ is experienced, which pushes the price __________ toward its equilibrium value

Adverse selection in the market for health insurance arises because

A) buyers of insurance know more than insurance companies about the likelihood of an illness for which buyers want insurance. B) the federal government intervenes in insurance markets by controlling prices and reimbursement policies. C) many insurance companies care more about profits than they do about providing services for their customers in the event of illness. D) insurance companies are not allowed to charge premiums that are high enough to insure against "worst-case" illness.

The corporation, as a form of business organization, fueled the positive trend toward federal regulation of business activities for all of the following reasons except

(a) Corporations were rapidly becoming more numerous than sole proprietorships and partnerships. (b) Corporations made possible or encouraged growth in the number of giant enterprises. (c) Corporations were adept at market manipulations, including price-fixing. (d) Corporations were able to take advantage of economies of scale which made possible business organizations whose affairs overlapped local or state jurisdictions, creating the need for federal control across state lines.