A Good API Makes It Easy to Develop a Program

question 28

True/False

A good API makes it easy to develop a program by providing all of the building blocks.

Evaluate the efficiency of market outcomes versus outcomes with government intervention.

Recognize the role of government in addressing market failures and the potential consequences of such interventions.

Analyze the impact of price floors on market quantities sold and surplus.

Assess the cost and impact of government purchase programs on markets.

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Definitions:

Moral Hazard

A situation in which one party engages in risky behavior or lacks incentive to guard against risk because another party bears the consequences.

Adverse Selection

A phenomenon where parties at a disadvantage due to asymmetric information are selected against in a market transaction, often leading to market failure.

Unobservable Actions

Actions taken by individuals or entities that cannot be seen or measured directly, often inferring effects through outcomes or reports.

Moral Hazard

A situation in economic transactions where one party is willing to take risks because the negative consequences of the risk will be borne by another party.