According to the textbook, expensive advertising campaigns are:
A. a waste of resources because they provide no useful information about product quality.
B. not a credible signal of quality because of adverse selection.
C. only a credible signal of product quality if they mention a money-back guarantee.
D. a credible signal of product quality.
Answer: D
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Many economists believe that at the current level of consumption of health care in the United States, the marginal cost of health care for society is:
A. Less than the marginal benefit B. Greater than the marginal benefit C. Equal to the marginal benefit D. Zero
Carve-out accounts
A. applies only to workers between 65 and 69 years of age. B. take funds away from the traditional social security system. C. has a tax rate of no more than 16.9 percent. D. all of these answer options are correct.