Government policies designed to change the distribution of income to one that is more equal involve taking from the rich and giving to the poor

In evaluating the degree of economic efficiency in a market, we can state that the size of the deadweight loss in a market will be smaller

A) the greater the difference between marginal cost and average revenue. B) the smaller the difference between marginal cost and price. C) the greater the difference between marginal cost and price. D) the smaller the difference between marginal cost and average total cost.

Unanticipated moral hazard contingencies can be reduced by

A) screening. B) long-term customer relationships. C) specialization in lending. D) credit rationing.