Refer to Figure 9.9. At free trade, domestic consumer surplus would be

Given the information in the figure above, Liz has a comparative advantage in ________ and an absolute advantage in ________

A) smoothies only; both goods B) smoothies only; smoothies only C) both goods; both goods D) salads only; both goods E) salads only; salads only

The result of the Cutler-Reber study of different insurance plans was

A) increased moral hazard among the insured. B) increased adverse selection among the insured. C) asymmetric information was irrelevant among the insured. D) competition among the insured resulted in higher prices for insurance.