1. Because of ______, the market will provide ______ the socially optimal level of information.

A. The credibility problem; more

B. The problem of adverse selection; less

C. moral hazard; more

D. The free-rider problem; less

2. If technological developments increase the marginal product of labor, then the:

A. Supply of labor will increase.

B. Demand for labor will decrease.

C. The equilibrium wage rate will decrease.

D. Demand for labor will increase.