Expenditures on social programs, such as health care and income security, constitute more than half of U.S. federal expenditures in 2016.

Solutions to the moral hazard in equity contracts include all of the following EXCEPT

A) government regulations to increase information. B) the use of financial intermediaries. C) the use of debt contracts. D) government ownership of resources.

Opportunistic behavior by oligopolies means

A) that firms cooperate in both the long run and in the short run to prevent others from entering the industry. B) that firms cooperate in the short run for current gains. C) that firms refuse to cooperate in the short run. D) that firms refuse to honor their product guarantees.