Which of the following is likely to arise in a market with ...

[bucstennis@aim.com]

Which of the following is likely to arise in a market with asymmetric information?
 
  A) Moral hazard
  B) A pecuniary externality
  C) A positive externality
  D) A prisoners' dilemma

Question 2

The figure above shows the market for the chemical hydrogen sulfide, the production of which creates an external cost.
 
  If the government assesses the marginal external cost correctly, what is the amount of the pollution tax that eliminates the inefficiency? A) 2 per pound
  B) 3 per pound
  C) 4 per pound
  D) 1 per pound
  E) None of the above answers is correct.

[kalskdjl1212]

Answer to Question 1

A

Answer to Question 2

B

[bucstennis@aim.com]

Thank you

[kalskdjl1212]

No problemo