The above figure shows supply and demand curves for milk. Suppose that the government passes a $2 per gallon subsidy. The deadweight loss resulting from this policy will be

An information cascade occurs when:

A) the buyer of a good has more information than the seller and takes hidden actions. B) the seller of a good has more information about the hidden characteristics of the good. C) people make the same decisions as others without focusing on private information. D) people have contradictory information about a good they want to consume.

The most popular floating rate in swaps is

A) LIBOR. B) the Treasury note rate. C) the prime rate. D) the six-month Treasury bill rate.