Market moralists often appeal to the idea that many market exchanges are not actually free choices because they are made against a background of structural inequalities.Group of answer choicesTrueFalse

How does the free-rider problem aggravate adverse selection and moral hazard problemsin financial markets?

In economics, a game is always a prisoners’ dilemma.Group of answer choicesTrueFalse

Markets fail to allocate resources efficiently whenGroup of answer choicesproperty rights are not well established.demanders and suppliers cannot agree on a price.goods are rival in consumption and excludable.too many buyers and sellers exist in the same market.

Why do people make economic choices?

A rational decision maker takes an action if and only if:Group of answer choicesthe net benefit is negativethe marginal benefit exceeds the marginal costthey do not face any trade-offsthe opportunity cost is low