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    Exam 23: Moral Hazard and Adverse Selection: Informational Market Failures
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    If Employers Cannot Distinguish Between Good and Bad Workers, Then
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If Employers Cannot Distinguish Between Good and Bad Workers, Then

Question 16

Question 16

Multiple Choice

If employers cannot distinguish between good and bad workers, then the employers must offer all workers a wage that reflects the __________ productivity of all workers in the population.


A) total
B) average
C) marginal

Correct Answer:

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