When asymmetric information problems drive high quality products from a market, we refer to this situation as:
A) adverse selection.
B) moral hazard.
C) a lemons problem.
D) A and C are correct.
E) B and C are correct.
D
Economics
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If a tax is imposed on each unit of a good purchased, ________
A) the supply curve shifts to the right B) the supply curve shifts to the left C) the demand curve shifts to the right D) the demand curve shifts to the left
Economics
Refer to Figure 16-1. Suppose the economy is in short-run equilibrium above potential GDP and no policy is pursued. Using the static AD-AS model in the figure above, this would be depicted as a movement from
A) C to B. B) A to E. C) D to C. D) C to D. E) E to A.
Economics