A shortage is eliminated when
a. a binding price ceiling is removed

Suppose that interest income is exempted from taxation, which costs the Treasury $100 billion in tax revenues, while at the same time transfer payments are reduced by $100 billion

Together, these two changes in fiscal policy ________ national saving while moving the distribution of income toward greater ________ . A) reduce, equality B) reduce, inequality C) increase, equality D) increase, inequality E) do not affect, equality

Which firm is not dealing with adverse selection

a. a manufacturer forgoes a usual 90 day probationary period for new employees b. a temporary clerical agency requires a typing test c. a manufacturer requires suppliers to be ISO 9000 certified d. Smokers get the worse life insurance rates as non-smokers