The ability to produce a good or service at a lower opportunity cost than other producers is called

Adverse selection is created by

A) incentives to change behavior after two parties have reached an agreement. B) risk. C) lump-sum taxes. D) private information.

Suppose the Bureau of Labor Statistics interviews 194,000 people in its monthly survey: 91,300 are not in the labor force, 94,000 are employed, 6650 are unemployed, and 1,150 are in the armed forces. What is the unemployment rate the BLS announces?

A) 4.95 percent B) 3.94 percent C) 7.0 percent D) 6.55 percent E) 6.48 percent