The existence of adverse selection results in:
A) reduced market efficiency
B) an increase in the likelihood of moral hazard
C) increase market transactions
D) higher transaction costs
A
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Figure 7.3
The price of Video Game rentals is $2 For MUA/$ and $4 for MUB/$.The price of Energy Drinks is $2.Budget = $28.Refer to Figure 7.3. A decrease in the price of video game rentals from $4 to $2 will:
A. increase the marginal utility per dollar of video game rentals. B. decrease the marginal utility per dollar of video game rentals. C. increase the marginal utility per dollar of energy drinks. D. decrease the marginal utility per dollar of energy drinks.
If planned aggregate expenditures are $300 billion, consumption is $180 billion, investment is $75 billion, government spending is $45 billion, there is a
A. trade surplus of $600 billion. B. trade surplus of $300 billion. C. trade deficit of $300 billion. D. trade balance.