Reading a Consumer Reports review of a vacuum cleaner before buying is the same way of dealing with information asymmetry as:
A. an insurance company offering different deductible-level plans.
B. an employer requiring a drug test.
C. a college charging a high tuition relative to other schools.
D. a buyer choosing a used car from a brand dealership.
Answer: D
Economics
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Rent ceilings
A) increase search activity. B) result in surpluses. C) create efficiency. D) benefit producers. E) have no effect if they are set below the equilibrium rent.
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The government's policy of reducing payments for physicians' services has generated a relative
A) increase in the number of physicians in the program. B) reduction in the number of physicians in the program. C) reduction in the demand for medical services. D) increase in the income of the physicians remaining in the program.
Economics