If an infant industry truly has a good chance to become competitive and produce profitably once it is well established, it is not at all clear that government should even offer protection to reduce short-run losses

Refer to the figure above. What is the equilibrium wage rate if the labor demand curve is LD2 and labor supply curve is LS2?

A) $20 B) $30 C) $15 D) $25

The result of the Cutler-Reber study of different insurance plans was

A) increased moral hazard among the insured. B) increased adverse selection among the insured. C) asymmetric information was irrelevant among the insured. D) competition among the insured resulted in higher prices for insurance.