Suppose Bob works for Mary as a proofreader. Mary and Bob fall deeply in love, marry, and have eight children. Bob stops working for Mary in order to care for the children. What will be the effect on GDP?

If insurance companies are able to gather more and better information on their customers, this will

A) help reduce the problem of adverse selection but do nothing to help with the problem of moral hazard. B) help reduce the problem of moral hazard but do nothing to help with the problem of adverse selection. C) help reduce the problems of adverse selection and moral hazard. D) do nothing to help with the problems of moral hazard and adverse selection.

__________ bidders in a Treasury auction are guaranteed their bids at the __________ price resulting from the auction

A) Competitive; market-clearing B) Noncompetitive; highest C) Competitive; lowest D) Noncompetitive; market-clearing