Which of the following is false? a. Product liability laws can ...

[jjjetplane]

Which of the following is false?
 a. Product liability laws can make it unprofitable to sell shoddy merchandise, providing a substantial incentive to provide safe products independent of government regulations.
  b. Asymmetric information exists when the available information is initially distributed in favor of one party to a transaction relative to another.
  c. In adverse selection situations, it is rational for a seller with more information about a product to provide a truthful and complete disclosure and make that fact known to a potential buyer.
  d. Moral hazard arises in part from the fact that it is costly for an insurer to monitor the behaviors of the insured party.

Question 2

The principle of comparative advantage states that a country should specialize in the production of those goods that have the highest opportunity costs.
 a. True
  b. False
  Indicate whether the statement is true or false

[DylanD1323]

Answer to Question 1

c

Answer to Question 2

False

[jjjetplane]

YES! Correct, THANKS for helping me on my review

[shailee]

Thanks for the timely response, appreciate it