The circular-flow diagram explains, in general terms, how the economy is organized and how participants in the economy interact with one another

A prolonged period of drought will shift the long-run aggregate supply curve to the right

a. True b. False Indicate whether the statement is true or false

Adverse selection occurs in the insurance market because:

A. the seller has more information than the buyer. B. the buyer has more information than the seller. C. both the buyer and the seller have incomplete information. D. Any of these could be the cause of adverse selection in insurance market.