Government mandated safety standard within firms
A) will always decrease efficiency.
B) can increase efficiency by avoiding a prisoner's dilemma outcome.
C) are unnecessary because of asymmetric information.
D) will create unfair competition among firms.
Question 2
The gambler's fallacy suggests that what happened in the past will influence the present. This is most likely true in which of the following situations?
A) flipping cards from a single deck
B) tossing a fair coin
C) the quality of play of a baseball team
D) horse racing
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