The Bureau of Labor Statistics divides the adult population into four categories: employed, underemployed, unemployed, and not in the labor force

Caroline is an artist. She purchases canvas, paints, brushes, and accessories for $75. She sells one of her original paintings to an art gallery for $1,500, which, in turn, sells it to an art lover for $4,500. How much value does the gallery add?

A) $1,425 B) $1,500 C) $3,000 D) $4,500

If the agent has more information than the principal and there is only one state of nature, then

A) efficiency in both production and risk-bearing can be achieved. B) only efficiency in production can be achieved. C) only efficiency in risk-bearing can be achieved. D) neither efficiency in production nor efficiency in risk-bearing can be achieved.