What are the optimal wage and employment level from the perspective of a union in Figure 31.1?

Adverse selection arises in the health insurance market because ________

A) buyers have private information B) sellers have private information C) different firms provide different insurance schemes D) the number of buyers and sellers is large

Refer to the scenario above. The winner of this auction will earn a surplus of ________ if he/she follows his/her dominant strategy

A) $100 B) $50 C) $400 D) $200