A government policy that taxes saving in order to discourage saving and encourage spending will
A) slow economic growth.
B) speed economic growth.
C) create a greater incentive for people to specialize.
D) strengthen people's property rights.
E) increase the growth rate of capital.
A
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Suppose the demand for widgets is given by QD = 100 - 5p - pd + 2I, where I is average consumer income, p is the price of lemons, and pd is the price of doodads. According to this equation, doodads are a(n) ________ for widgets
A) substitute B) complement C) input D) None of the above
One result of asymmetric information in health insurance markets is
a. an optimal number of insurance policies sold. b. adverse selection. c. externalities in consumption. d. a low marginal benefit of additional information for the buyer of insurance. e. The principal-agent problem.