Which of the following is not an example of the efforts to reduce the adverse selection problem?
A. Sellers offer warranties.
B. Consumers invest in information.
C. Sellers offer money-back guarantees.
D. All of these are examples of efforts to reduce adverse selection.
Answer: D
Economics
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What is one reason it might be difficult to dissuade people from pirating music off the Internet?
A) Consumer surplus is very high when music is pirated. B) In general, consumers get a rush from "stealing." C) Consumers mistakenly believe that the Internet is public domain. D) Producer surplus is very low when music is pirated.
Economics
If Iceland can produce fish with fewer resources than Greenland, we have evidence of
a. specialization b. geographic advantage c. comparative advantage d. absolute advantage e. free trade
Economics