Figure 4-6



The revenue generated by the tax illustrated in is given by the area

a.

ACLH.

b.

BEKM.

c.

ACFG.

d.

0AGJ.

b

Economics

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Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the short run would be:

A. P1 and Y2. B. P3 and Y1. C. P2 and Y2. D. P2 and Y3.

Economics

When a physician knows more about alternative treatments than her patients do, we say that _______ exists.

a. adverse selection b. asymmetric information c. rational ignorance d. moral hazard e. perfect information

Economics