Which of the following is an argument in favor of trade liberalization?

The largest category of state and local government expenditures is

A) public welfare. B) highways. C) education. D) interest on their debt. E) Social Security.

If Ben becomes less likely to buy smoke detectors after he has fire insurance, he is illustrating

A) moral hazard. B) adverse selection. C) the lemon problem. D) the free rider problem.