When one side of a market knows more about a product than the other side, the moral hazard problem is experienced

Strategic behavior is the result of an interdependent world

Indicate whether the statement is true or false

How do taxes and government cash transfer payments alter the measured distribution of income?

a. Taxes, because they are included in the official data on income distribution, are reflected in the data, but cash transfer payments, which redistribute income to lower income households, are not included. b. Cash transfer payments are included in the official data on income distribution, but taxes are not. c. Both taxes and cash transfer payments are included in the official data on income distribution d. Neither taxes or cash transfer payments are included in the official data on income distribution