A consumer is likely to avoid adverse selection and get a high-quality lunch at

A) a snack bar at a traveling carnival.
B) a vendor who parks her cart at a different location every noon.
C) a restaurant in the center of a business district.
D) a restaurant located next door to Disneyland.

C

Economics

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How do firms and households interact within the context of the circular flow model?

What will be an ideal response?

Economics

Which of the following checks issued by the government represents a transfer payment?

A. The state of Oregon pays a construction firm for its work in repairing a state highway. B. The state of Illinois pays groundskeepers at the state capitol building their weekly wages. C. The federal government pays a retiree her Social Security benefits. D. The federal government pays a defense contractor for development of a missile system.

Economics