Pricing insurance policies is made difficult because buyers have more information than sellers. This difficulty is an example of

Evaluate the following statement: "Water is plentiful, therefore it can't be a scarce resource like oil which is not as plentiful."

What will be an ideal response?

Suppose a sole proprietorship is earning total revenues of $100,000 and is incurring explicit costs of $75,000. If the owner could work for another company for $30,000 a year, we would conclude that:

A) the firm is incurring an economic loss. B) implicit costs are $25,000. C) the total economic costs are $100,000. D) the individual is earning an economic profit of $25,000.