According to the Text, Federal Policies __________

question 72

Multiple Choice

According to the text, federal policies __________.

• A)have consistently helped U.S. cities and are responsible for their vigor
• B)have sometimes caused problems for cities
• C)have had no impact on U.S. cities what-so-ever
• D)must be drafted to protect cities or they will decline even further

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Definitions:

Adverse Selection

A situation where asymmetric information leads to the selection of undesirable participants in a transaction or contract, often seen in insurance markets.

Consumer Surplus

The divergence between the total sum consumers are inclined and able to disburse for a merchandise or service, and the total sum they actually disburse.

Negative Externality

A cost that affects a party who did not choose to incur that cost, often associated with production or consumption activities.