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    Principles of Economics
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    Exam 20: Decisions With Private Information
  5. Question
    Market Forces Work More Efficiently When
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Market Forces Work More Efficiently When

Question 88

Question 88

Multiple Choice

Market forces work more efficiently when


A) adverse selection is offset by moral hazard.
B) price is fixed rather than flexible.
C) buyers and sellers are altruistic.
D) there is an absence of private information.

Correct Answer:

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